Wells Fargo Just Got Fined $250 Million -- Here's Why It's Good News for the Stock
The Office of the Comptroller of the Currency (OCC), which regulates national banks in the U.S., announced Thursday that it would fine Wells Fargo (NYSE: WFC) $250 million for "unsafe" practices tied to its home lending loss-mitigation program. The OCC also said the fine had to do with the bank taking too long to become compliant with a 2018 OCC consent order related to mortgage violations and deficiencies in risk management. The OCC also issued a cease and desist order against the bank, requiring Wells Fargo to create a better home lending loss-mitigation program.
While all of this sounds pretty bad, Wells Fargo stock price actually climbed in after-hours trading following the announcement, as investors reacted positively to the news. Here's why.
Image source: Wells Fargo.
Source Fool.com
