Skip to main content

SEC Looking Into Wells Fargo Communications

Feb 22, 2023
Wells Fargo Bank
Head of Multimedia

Regulators have been cracking down on retention of employee messages

Wells Fargo is once again under investigation by federal regulators. 

This time, the U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission are looking into Wells Fargo’s “compliance with records retention requirements relating to business communications sent over unapproved electronic messaging channels,” the company disclosed Tuesday in an SEC filing. 

The company did not elaborate. The SEC has been cracking down on publicly traded companies’ retention of electronic messages between employees. 

In September, the agency announced settlements with 15 firms totaling $1.1 billion for “widespread and longstanding failure” to maintain and preserve these communications. 

The list of offenders included Bank of America Securities Inc., Citigroup Global Markets Inc., and Goldman Sachs & Co. LLC. 

Wells Fargo also disclosed in Tuesday’s filing that it remains “involved in a number of judicial, regulatory, governmental, arbitration and other proceedings or investigations concerning matters arising from the conduct of its business activities, and many of those proceedings and investigations expose the Company to potential financial loss or other adverse consequences.” 

In December, the nation’s fourth largest bank by assets agreed to pay the Consumer Financial Protection Bureau $3.7 billion to settle a complaint over a wide range of practices. 

The CFPB said at the time that Wells Fargo had engaged in a “rinse-repeat cycle of violating the law,” including improperly denying thousands of applications for mortgage loan modifications. 

Wells Fargo did score a partial victory last month, when a federal judge in North Carolina dismissed parts of a discrimination lawsuit

The judge did allow the case, which alleges Wells Fargo relied on a biased appraisal as part of a refinance application, to move forward, but dismissed claims the bank conspired with the appraiser to commit any wrongdoing. 

About the author
Head of Multimedia
Mike Savino was Head of Multimedia at NMP.
Published
Feb 22, 2023
Fed Rate Could Be Down To 4.6% By Year's End

Inflation must hit its 2% goal for Fed to reduce rates.

New Compliance Requirements Add Challenges

Latest changes arrive at an already disruptive time in the mortgage industry

Changes Coming For Investment Properties

Using leases to qualify will require Proof

FCC Adopts New Rules To Close The 'Lead Generator Loophole'

Mortgage lead providers respond, saying this will "wipe out" several small and mid-tier businesses

Trade Associations & Lenders Stand Behind Trigger Leads Bill

Major trade associations like The MBA, NAMB, and BAC, urge action on S. 3502.

Supply And Demand Are Still Alive And Well

Treasury auctions may face weaker demand but they’re still getting done