The Blubber

Per CNN

Wells Fargo was previously the target of a class action lawsuit that alleged that the firm had defrauded its shareholders regarding how it was recovering from customer treatment scandals. The settlement was worth $1 billion because the firm reportedly lied about its progress.

The preliminary settlement for the class action lawsuit still requires approval from a judge and was filed Monday night with the Manhattan federal court. Per court papers, it was revealed that the mediator was the one that suggested the dollar amount, which Wells Fargo has agreed to pay.

In 2018, the Federal Reserve and two other financial regulators ordered Wells Fargo to improve its oversight and governance. Now, per the class action lawsuit, shareholders accused Wells Fargo of "overstating how well it was complying with those orders."

Chief Executive Charlie Scharf gave a statement to shareholders in a March 3 letter that detailed how the bank was approaching the issues. He also shared the differences regarding what the bank was now compared to when he arrived.

Scharf: “When I arrived, we did not have the culture, effective processes, or appropriate management oversight in place to remediate weaknesses on a timely basis... Today, we approach these issues differently.”

In January, Wells Fargo reportedly fired an executive after he reportedly urinated on a fellow passenger during a flight. The company said it "holds its employees to the highest standards" regarding "professional and personal behavior."

Another former executive of Wells Fargo has pled guilty to charges that she opened fake accounts in 2016. The 63-year-old Carrie Tolstedt would face a civil penalty of $17 and up to 16 months in prison under a plea deal with federal prosecutors.

The former executive was in charge of the retail and small business sector of Wells Fargo from 2007 to 2016.

See flow at unusualwhales.com/flow.

Other News:

• Wells Fargo has fired an executive after he reportedly urinated on a fellow passenger during a flight
• Wells Fargo's former head Carrie Tolstedt to face up to 16-month prison time and $17 million fine over account scandal

Resources:

CNN