Wells Fargo Gets Lower Marks on Community-Lending Scorecard
March 28 2017 - 2:32PM
Dow Jones News
By Emily Glazer
Wells Fargo & Co. said Tuesday that it was downgraded on a
key regulatory rating that focuses on its ability and willingness
to lend to lower-income populations.
The San Francisco bank received a "needs to improve" Community
Reinvestment Act rating because of its regulatory consent orders
related to its sales practices scandal, the bank said.
The Community Reinvestment Act rating covered 2009 to 2012. The
bank has been looking as far back as 2009 and 2010 to uncover
consumer financial harm related to its aggressive sales
tactics.
In September, it paid a $185 million fine after it was dealt
regulatory consent orders for opening as many as 2.1 million
accounts using fictitious or unauthorized customer information.
Wells Fargo Chief Executive Timothy Sloan said in a statement
the bank is "disappointed with this rating given Wells Fargo's
strong track record of lending to, investing in and providing
service to low- and moderate-income communities," but added that
the bank is committed to addressing the OCC's concerns.
The Wall Street Journal in December reported that this downgrade
would be likely.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
March 28, 2017 14:17 ET (18:17 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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