Wells Fargo agrees to pay $1B in lawsuit settlement for shareholder fraud allegations over customer treatment scandals. A mediator suggested the amount, and the proposed class action settlement needs court approval. Since 2018, the bank has been under consent orders from the Federal Reserve and other regulators to enhance oversight. The Fed’s asset cap on the fourth-largest US bank impacts competition with larger rivals. Shareholders claim Wells Fargo overstated compliance with regulatory orders, resulting in a market value decline of over $54B over two years.
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