Iowa to Receive Over $6 Million From Wells Fargo Settlement
Wells Fargo has agreed to pay $575 million to settle a slew of lawsuits against the company.
The bank will pay all 50 states and Washington, D.C. after it admitted to opening more than three million fake bank and credit card accounts. Wells Fargo has already paid hundreds of millions of dollars for misleading investors about its sales practices. The federal reserve will not allow Wells Fargo to grow its assets until it is satisfied that the bank has cleaned up its act. Iowa Attorney General Tom Miller says this settlement represents the most significant engagement involving a national bank by state attorney generals without a federal law enforcement partner.
“I think that this is an important precedent for state attorney generals in enforcing consumer laws and other laws against national banks. There has been some question about our authority. There`s a very important supreme court case backing our authority and this is an additional precedent,” said Miller.
Iowa will receive over $6 million as its share of the settlement. The money will go to Iowa’s Consumer Education and Litigation Fund.