Wells Fargo shares fell Friday after a filing with the U.S. Securities and Exchange Commission showed a new review of the bank’s consumer sales scandal could reveal a “significant increase” in unauthorized accounts.
“We expect that our review of the expanded time periods … may lead to a significant increase in the identified number of potentially unauthorized accounts,” the firm said in the filing. “However, we do not expect any incremental customer remediation costs as a result of these efforts to have a significant financial impact on the Company.”
Wells Fargo said in the filing it expects legal costs could exceed what it has already set aside by $3.3 billion.
“To regain the trust we have lost, we must continue to be transparent with all our stakeholders and go beyond what has been asked of us by our regulators by reviewing all of our operations —leaving no stone unturned — so we can be confident we have done all that we can do to build a better, stronger Wells Fargo,” CEO Tim Sloan, who took the position in the wake of the sales scandal, said in a separate press release Friday.
Shares traded 1 percent lower.
Wells Fargo one-day performance
Wells Fargo said it has expanded the review to “cover the entire consent order period of January 2011 through September 2016, and to perform a voluntary review of accounts from 2009 to 2010.” The firm expects to complete the review by the end of the third quarter of this year.
The Consumer Financial Protection Bureau (CFPB) has also begun an investigation into whether customers were affected by Wells Fargo’s freezing and, in many cases, closing, of consumer deposit accounts, the filing said.
This story is developing. Please check back for further updates.
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