ML-Implode News - Wells Fargo Adds $1 Billion to Possible Legal Cost

Wells Fargo & Co. added $1 billion in the third quarter to what it says the bank may face in possible legal expenses. Legal costs could potentially be $3.3 billion more than what the San Francisco-based bank has reserved, Wells Fargo said Friday in a regulatory filing. While that figure was unchanged from the previous three-month period, it constitutes a $1 billion increase because Wells Fargo moved a similar amount into legal reserves during the period.
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Wells Fargo also said in the filing that it will pay $130 million -- or $50 million more than previous estimates -- to auto customers who were charged for unwanted insurance. The updated amount includes $100 million in cash remediation and $30 million in adjustments for customers who had the insurance added to their accounts after Oct. 15, 2005, according to the filing. Wells Fargo had said in July it would pay harmed customers $80 million.

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Wells Fargo Adds $1 Billion to Possible Legal Cost