Sep 27, 2021 - Economy

Wells Fargo settles DOJ lawsuit over foreign currency exchange service

Jacob Knutson

A view of a Wells Fargo branch in New York City in August 2016. Photo: Pablo Monsalve/VIEWpress via Getty Images

Wells Fargo agreed to pay $37 million on Monday to settle a Department of Justice lawsuit that accused the bank of overcharging hundreds of its commercial customers using its foreign currency exchange service, according to Bloomberg.

Why it matters: It's the bank's latest financial scandal, coming after a years-long public rehabilitation campaign to recoup the bank's image since it became known in 2016 that it created millions of fake accounts and opened them without account holders' permission.

The bank agreed in February 2020 to pay a combined $3 billion to the Justice Department and the Securities and Exchange Commission for opening millions of the fake accounts between 2002 and 2016.

The big picture: The U.S. claimed in the latest lawsuit that the bank defrauded 771 customers, including many small- or medium-sized businesses and banks, by charging more than they claimed for foreign exchange transactions, according to Bloomberg.

A judge must still approve the settlement, which also resolves civil fraud charges against Well Fargo, Reuters notes.
Wells Fargo did not immediately comment on the settlement.

Go deeper: Wells Fargo abandons personal credit lines

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Wells Fargo settles DOJ lawsuit over foreign currency exchange service

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