Sept 12 (Reuters) - Wells Fargo & Co said on Monday
it would pay a penalty of $13.2 million as part of a settlement
with the U.S Department of Labor to resolve the federal agency's
review of certain transactions related to the bank's 401(k)
About $131.8 million would also be paid out to eligible
current and former participants of the plan, the bank said,
adding that it "strongly disagrees with the DOLs allegations".
WFC gives its employees some of its preferred stock under a
retirement package offered to them. The DoL alleged that from
2013 through 2018, the funds under the plan paid more for the
preferred stock than what it was worth. Wells first disclosed
the federal review in February.
The fourth largest U.S. bank has been the subject of several
regulatory crackdowns in the past few years, including those
tied to a sales scandal that erupted publicly in 2016.
Chief Executive Officer Charlie Scharf has pledged to get
the bank "on the right track" and resolve regulatory issues as
quickly as possible.
(Reporting by Niket Nishant in Bengaluru; Editing by Anil
D'Silva and Vinay Dwivedi)