"The action by the CFPB closes out a (more than five year) investigation. We are pleased to put this matter behind us,” said Lee Henderson, a spokesman for the bank.
Wells Fargo's sales practices scandal rocked the financial world half a decade ago, when the bank was found to have encouraged employees to open millions of fake accounts to meet sales goals. The scandal ruined Wells Fargo's reputation as a well-run bank through the Great Recession, led to billions of dollars worth of fines against the bank, and almost immediately led to the resignation of the bank's CEO and eventually its board of directors.
Wells has been under tight supervision by the Federal Reserve since that scandal broke, keeping the bank from growing any bigger until it fixes its workplace culture. There are no signs that the Fed plans to release Wells from its regulatory leash any time soon.
US Bank, based in Minneapolis, is currently in the middle of purchasing the retail banking business of Japanese banking giant MUFG, a deal announced more than a year ago. The transaction is taking longer than expected, with both banks now expecting it to close some time in the second half of the year.
Shares of US Bancorp fell 4.3% to $46.12.