Fed fines Wells Fargo $85 mln for mortgage abuses
WASHINGTON (MarketWatch) -- The Federal Reserve on Wednesday slapped an $85 million fine on Wells Fargo & Co for allegedly steering borrowers into high-cost subprime mortgage loans even though they qualified for safer loans. The fine is the largest civil monetary penalty the Fed has ever assessed in a consumer-protection enforcement action, the central bank said in a press release. The Fed said employees at a subsidiary of Wells Fargo falsified information about borrowers' incomes to make it appear they qualified for loans. Wells Fargo , the bank holding company based in San Francisco, did not admit to any wrongdoing. The order requires Wells Fargo to compensate borrowers affected by these practices. The bank also agreed to improve the oversight of its home mortgage loan business.