Wells Fargo (WFC) announced that it has reached an agreement with the Office of the Comptroller of the Currency (OCC) to enhance its systems for detecting money laundering and complying with international sanctions. According to the OCC, Wells Fargo has already initiated corrective actions and is committed to improving its internal controls and financial crime risk management. Notably, the agreement with the OCC does not mention any financial penalties imposed on the bank.
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Wells Fargo Responds to the Agreement with OCC
In response to the agreement, Wells Fargo stated that it is addressing a substantial portion of the issues outlined by the OCC and remains focused on fulfilling its regulatory commitments.
Last month, the bank disclosed that it was under scrutiny by government authorities concerning its anti-money laundering and sanctions programs. However, it did not specify which government agencies were involved or provide further details. Additionally, the bank mentioned that it is in ongoing discussions with the U.S. Securities and Exchange Commission (SEC) to resolve an investigation into its cash sweep options for investment advisory clients.
Is Wells Fargo a Buy or Sell?
Analysts remain cautiously optimistic about WFC stock, with a Moderate Buy consensus rating based on seven Buys and Holds each. Over the past year, WFC has increased by more than 20%, and the average WFC price target of $63.56 implies an upside potential of 23.3% from current levels.
