Wells Fargo stocks to fall as Wells Fargo falls 3% as regulators probe the financial company
Wells Fargo stock is set to fall by as much as 3%, after regulators announced they are investigating the financial giant.
The Wall Street Journal first reported Thursday that Wells Fargo was being investigated by the U.S. Commodity Futures Trading Commission (CFTC) for potential violations of the Volcker Rule.
The CFTC is a regulatory agency of the U-S Department of the Treasury, tasked with overseeing the operation of the futures market.
The regulator is also conducting a separate probe into whether Wells Fargo improperly processed some customer funds for investors.
It is unclear whether Wells has agreed to a settlement with regulators or is seeking to strike a deal.
The regulator is investigating whether Wells made improper transactions with the CFTC and whether its former CEO, John Stumpf, had engaged in a pattern of misconduct.
Stumpf stepped down from the company in January, a month after the commission announced it was looking into the firm’s alleged improper trades.
The company did not immediately respond to a request for comment.
The SEC said in a statement that Wells “is cooperating fully with the commission’s investigation, and will provide a further update in the coming days.”
Wells Fargo declined to comment on the SEC announcement.