A federal regulator criticized Wells Fargo for engaging in unfair and deceptive practices and failing to manage risks, and said it had not set aside enough money to pay back the customers it harmed, the New York Times reported on Saturday. The confidential report, prepared by the Office of the Comptroller of the Currency criticizes Wells Fargo for forcing hundreds of thousands of borrowers to buy unneeded auto insurance when they took out a car loan, as well as its handling of the problems once they were detected. The regulators’ report, sent to the bank last week, is preliminary. The comptroller’s findings could have a significant impact on the bank. The report stated that Wells Fargo had most likely underestimated how much it would cost to reimburse harmed customers. And it could force the bank to curb, or at least more closely monitor, its practices across the entire company.
