File photo taken in 2013 shows a Wells Fargo Bank branch connected to the U.S. banking giant's headquarters in San Francisco, California.
Federal regulators are seeking a $1 billion payment from Wells Fargo to settle problems with mortgage and auto loan issues, along with compliance risk management concerns, the bank said Friday as it reported its first-quarter earnings.
The disclosure and resulting uncertainty likely mark a new setback for Wells Fargo.
If levied, a collective $1 billion penalty by the two regulators would be the highest-ever fine imposed by the consumer bureau.
Wells Fargo's statement said the talks with federal regulators have also focused on the bank's overall "compliance risk management program.".
Wells Fargo accepted the sanctions and said they could reduce its profits by as much as $400 million this year.
Wells Fargo potentially faces a separate federal investigation of whether its wealth management division made inappropriate referrals or recommendations to the company's investment and fiduciary services business. »