Wells Fargo reaches deal with U.S. Department of Labor over 401(k) legacy matter

Sep. 12, 2022 10:44 AM ETWells Fargo & Company (WFC)By: Max Gottlich, SA News Editor20 Comments

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  • Wells Fargo (NYSE:WFC) has reached a settlement agreement with the U.S. Department of Labor Monday related to a probe initiated in 2018 on whether the lender pushed customers to roll out their low-cost 401(k) plans into more expensive accounts.
  • The bank, although disagreeing with the DOL's allegations about the legacy matter, has agreed to pay ~$13.2M to the government department, and ~$131.8M to eligible current and former participants of its 401(k) plans.
  • As part of the settlement, the company will also redeem certain preferred securities held by its 401(k) Plan in exchange for shares of its common stock.
  • Previously, (April 26, 2018) The Wall Street Journal reported Wells probed over 401(k) dealing.

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