...February 24, 2020 NEW YORK (S&P Global Ratings) Feb. 24, 2020--S&P Global Ratings said today that the $3 billion settlements that Wells Fargo & Co. (A-/Negative/A-2) reached with the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have removed a major legal overhang for the company. The settlements relate to investigations by both agencies into Wells' historical sales practices and related disclosures, including the opening of roughly 2.5 million unauthorized accounts to help achieve sales goals. The settlements resolve both civil and criminal investigations but include a deferred prosecution agreement, in which Wells will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. The settlements collectively were lower than we had expected, which we view positively, and the company was fully reserved for it. Thus, the settlements on their own will...
