Shares of Wells Fargo & Company (WFC) - Get Report closed up .55% to close at $45.78 on Friday after the financial services company agreed to pay $575 million to resolve investigations by attorneys general in every state and the District of Columbia.
The charges are related to Wells Fargo opening millions of accounts in customers' names without their permission and also involves businesses ranging from mortgage banking to auto lending. The scandal was caused by an incentive-compensation program for employees to create new accounts.
Two years ago, Wells Fargo agreed to pay $190 million to settle similar federal claims that the bank created phony customer accounts, and improperly referred and charged customers for various financial services products.
In addition to the fine, Wells Fargo agreed to maintain teams to review and respond to customer inquiries and create and maintain a website that describes the issues and Wells Fargo's existing remediation efforts, and identifies contact information for consumers to use if they have any questions or concerns.
Wells Fargo will also provide periodic reports to the states on the progress of its existing remediation efforts, the company said in a statement. As of the end of third-quarter 2018, the company had accrued $400 million of the settlement amount and expects to accrue the remaining $175 million in fourth quarter.
In April, Wells Fargo paid $1 billion to the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency to settle investigations into its mortgage- and auto-lending practices. This month, an agreement was finalized where Wells Fargo will pay $480 million to settle a class-action claim by shareholders who said they were harmed by the bank's false statements about its misdeeds.
"This agreement underscores our serious commitment to making things right in regard to past issues as we work to build a better bank," CEO and President Tim Sloan said in a statement.
This story has been updated.