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Bloomberg
Wells Fargo & Co is in negotiations to settle a US probe into procurement of low-income housing tax credits as its top lawyer tries to clean up issues before handing off the chief executive officer role.
The US Justice Department is aiming to resolve an investigation into multiple banks’ alleged manipulation of tax-credit bidding in the next couple months, according to people familiar with the matter. Wells Fargo’s settlement could exceed $100 million, said the people, asking not to be identified because no agreement has been reached.
The agency is investigating whether Wells Fargo and other banks, including PNC Financial Services Group Inc., colluded with developers to lower bids for tax credits that are part of a federal program to encourage development of affordable housing. Wells Fargo is searching for an outside leader to replace Tim Sloan, who stepped down in March after struggling to move the lender past a number of scandals. The bank named general counsel Allen Parker as interim CEO.