JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) were slapped with a $35.7 million fine by state and federal regulators, for accepting illegal payments from a title company, Genuine Title, in exchange for business. The bulk of the penalty is for Wells Fargo, which agreed to pay $34.8 million, while JPMorgan will pay $900,000.
Wells Fargo has admitted that millions of its customers were victimized by bank employees who opened unauthorized accounts in these customers’ names, but those fake account fiasco victims can’t file lawsuits against the bank because of clauses buried in their account contracts. A newly introduced piece of legislation would prevent Wells Fargo from using that clause to minimize its responsibility under the law.
Justin Sullivan/GettyWells Fargo is on the hook for $185 million in fines after settling charges brought by the Consumer Financial Protection Bureau of widespread abusive and illegal sales practices dating back to the beginning of 2011.