The third largest U.S. bank Wells Fargo announced Wednesday to cut bonus for its executives following scandal that affected more customers than previously estimated.
A whopping $113 million will be paid by the New Jersey-based Freedom Mortgage Corp., the private lender company which settled with the U.S. Justice Department last Friday. According to an announcement from the U.S. agency, Freedom Mortgage admitted to the alleged violations made against the standards of the False Claims Act.
The Federal Reserve and the Federal Deposit Insurance Corp. wants significant revisions on the living wills of United State's five biggest banks. These revisions will prevent taxpayers from carrying the burden in case of bankruptcy.
Despite the agreement of settlement with FHA, Wells Fargo would still be batting federal and state mortgage inspections.
