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How did the Wells Fargo scandal affect the company financially? Please provide a financial ratio analysis

How did the Wells Fargo scandal affect the company financially?

Please provide a financial ratio analysis

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Answer- Wells Fargo Scandal is a controversy brought about by creation of millions of fraudalent savings and checking accounts on behalf of Wells Fargo clients without their consent. CFPB fined the company because of this illegal activity. The company also face additional civil and criminal suits as well.

Effects of scandal on company's financial performance- Around $100 million was fined by the CFPB for the illegal practice of opening unauthorized accounts. $2.5 million was asked to refund to its customers. $6.1 million in customer refunds due to inappropriate fees and charges. A whooping $575 million settlement for a combination of opening unauthorized accounts and charging for unnecessary auto insurance and mortgage charges. $142 million in customer compensation as a result of class action settlement. $480 million settlement for a shareholder class action law suit.

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