Wells Fargo’s good results could be tempered by $1bn settlement
New York — Wells Fargo’s better-than-expected results could be short-lived. The firm warned on Friday that it may take a charge of as much as $1bn to settle a US probe of its consumer business. That would reverse its relatively rosy first-quarter results, which included higher profit and a smaller drop in revenue than Wall Street expected, after the US Federal Reserve prohibited the scandal-plagued bank from increasing assets until it fixes its missteps. "We recognise that it will take time to put all of our challenges behind us," CEO Tim Sloan said in a statement on Friday. In February, the Fed curbed Wells Fargo’s progress toward recovering from a long-running scandal involving misleading sales practices at its consumer bank. Since then, the nation’s third largest lender by assets has faced more scrutiny, with the US department of justice and the Securities and Exchange Commission (SEC) examining the wealth-management unit, a person familiar with the probes had said. Shares of Wel...
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