Wells Fargo & Co. will pay $37.3 million to settle U.S. government claims it fraudulently overcharged commercial clients on foreign exchange services, the latest in a string of scandals over the bank’s treatment of customers. Yesterday’s settlement resolves U.S. Department of Justice civil fraud charges against the fourth-largest U.S. bank, and includes a $35.3 million fine plus a $2 million forfeiture. Wells Fargo previously returned $35.3 million to customers as restitution, making its total payout about $72.7 million. The Justice Department said that sales specialists jokingly used expressions such as “back the truck up” and “when in doubt, spread them out” when they were overcharging customers, with one referring to the sales group as a “bucket shop.” Wells Fargo declined to comment, pending required approval of the settlement by U.S. District Judge John Koeltl in Manhattan federal court. The San Francisco-based bank has been subject since 2018 to a Federal Reserve cap on assets, which must remain below $1.95 trillion until it improves its governance and risk controls. Wells Fargo has already paid more than $5 billion in fines since the scandals began in 2016.
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