Wells Fargo reaches $3 billion settlement over fake-accounts scandal

Wells Fargo &Co. entered into agreements with the Justice Department and the Securities and Exchange Commission to settle investigations by both agencies over its fraudulent fake-account scandal.

Wells Fargo has agreed to make payment totaling $3 billion.

“The conduct at the core of today’s settlements — and the past culture that gave rise to it — are reprehensible and wholly inconsistent with the values on which Wells Fargo was built,” said Wells Fargo CEO Charlie Scharf in a press release. “Our customers, shareholders and employees deserved more from the leadership of this company. Over the past three years, we’ve made fundamental changes to our business model, compensation programs, leadership and governance...”

The agreement with the Justice Department resolves the criminal investigation with Wells Fargo. A separate settlement agreement was made to resolve the Justice Department’s civil investigation.

“And a separate administrative order that resolves the SEC’s civil investigation,” the Wells Fargo release stated. “Wells Fargo has agreed to the establishment of a $500 million Fair Fund for the benefit of investors who were harmed by the conduct covered in the agreement. The Fair Fund is part of the $3 billion settlement.”