Wells Fargo Says Litigation Losses Could Be As Much As $1.2 Billion

By Dow Jones Business News, 
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Wells Fargo & Co. said the amount it may lose related to litigation in excess of legal reserves could be as much as $ 1.2 billion as of June 30, up from $911 million three months earlier, according to a regulatory filing released by the bank Wednesday.

The estimate is closely watched by investors as a way to gauge whether legal costs are rising or falling versus a bank's previous expectations. Wells Fargo and other banks generally don't disclose their reserves.

Wells Fargo has largely avoided the major legal settlements other banks have dealt with to remedy regulatory concerns in the run-up to the financial crisis. It did, however, reach a deal in December 2013 to pay $541 million to Fannie Mae to settle claims that it sold defective mortgages to the government-controlled home-loan finance company. It has settled with other regulators on other matters that cost the bank less money than some other banks' fines, but still tens of millions of dollars.

The San Francisco bank remains involved in some legal proceedings but there were no major updates or large new cases reported in Wednesday's filing with the Securities and Exchange Commission.

Write to Emily Glazer at emily.glazer@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


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  08-06-141715ET
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