Wells Fargo & Co. said Thursday the upper end of the range of “reasonably possible potential litigation losses” stood at about $1.7 billion as of Sept. 30. In a filing with the Securities and Exchange Commission, the bank said it is unable to determine whether the current investigations of its sales practices and mortgage-related regulatory probes will have a material adverse affect on its finances. “It is possible that the ultimate resolution of a matter, if unfavorable, may be material to Wells Fargo’s results of operations for any particular period,” the bank cautioned. There is also the risk that regulatory authorities could require admissions of wrongdoing, in addition to monetary penalties, which could limit the bank’s ability to engage in certain business activities. The bank has been embroiled in a scandal in which employees opened millions of unauthorized accounts to meet aggressive sales goals. Chief Executive John Stumpf was forced to forfeit unpaid benefits and resigned from his position. Shares were slightly lower in premarket trade, and are down 17% in the year so far, while the S&P 500 has gained 2.6%.
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