Wells Fargo & Co. said on Monday it would pay a penalty of $13.2 million as part of a settlement with the U.S Department of Labor to resolve the federal agency’s review of certain transactions related to the bank’s 401(k) retirement plans.
About $131.8 million would also be paid out to eligible current and former participants of the plan, the bank said, adding that it “strongly disagrees with the DOL’s allegations”.
WFC gives its employees some of its preferred stock under a retirement package offered to them. The DoL alleged that from 2013 through 2018, the funds under the plan paid more for the preferred stock than what it was worth. Wells first disclosed the federal review in February.
The fourth largest U.S. bank has been the subject of several regulatory crackdowns in the past few years, including those tied to a sales scandal that erupted publicly in 2016.
Chief Executive Officer Charlie Scharf has pledged to get the bank “on the right track” and resolve regulatory issues as quickly as possible.
Friends Read Free