Bulletin: Wells Fargo&Co. Ratings Are Currently Unaffected By Governance Weaknesses

NEW YORK (S&P Global Ratings) Sept. 21, 2016--S&P Global Ratings said today that its issuer credit ratings on Wells Fargo&Co. (A/Stable/A-1) are not currently affected by developing information (including from yesterday's U.S. Senate testimony) and ramifications from the company's improper sales practices for retail products and services. Although this weakness in governance at Wells is unexpected and has caused some reputational damage to the company, we currently do not expect this matter to substantially harm the company's strong financial profile or market positions. Following the $185 million in settlements with the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency, and the Los Angeles City Attorney and the $5 million in customer remediation, Wells'

...NEW YORK (S&P Global Ratings) Sept. 21, 2016--S&P Global Ratings said today that its issuer credit ratings on Wells Fargo & Co. (A/Stable/A-1) are not currently affected by developing information (including from yesterday's U.S. Senate testimony) and ramifications from the company's improper sales practices for retail products and services. Although this weakness in governance at Wells is unexpected and has caused some reputational damage to the company, we currently do not expect this matter to substantially harm the company's strong financial profile or market positions. Following the $185 million in settlements with the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency, and the Los Angeles City Attorney and the $5 million in customer remediation, Wells' management is taking many steps to address the unintended consequences of the incentives program previously in place to spur cross-sell activity. For example, the company is eliminating product...

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