Wells Fargo Profit Falls on Sales Scandal Costs, Higher Reserves

Wells Fargo Profit Falls on Sales Scandal Costs, Higher Reserves
A Wells Fargo logo in New York on Jan. 10, 2017. Stephanie Keith/Reuters
Reuters
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Wells Fargo & Co. on Friday reported a 31 percent decline in third-quarter profit as the bank racked up costs related to a fake accounts scandal and boosted its loan loss reserves in preparation for a potential slowdown.

The bank posted $2 billion in operating losses related to litigation, customer remediation, and regulatory matters associated with the now six-year-old scandal over its sales practices.