November 8, 2019

Wells Fargo Bank, N.A. will pay $14.475 million — a $10 million penalty, and $4.475 million in restitution — to resolve CFTC charges related to the bank’s actions in a single 2014 FX forward contract trade valued at approximately $4 billion.  The contract required Wells Fargo to calculate the price based on a weighted average spot rate on the relevant day.  However, Wells Fargo had no system in place to accurately determine such a rate, but rather that inform the counterparty of that fact, Wells Fargo simply picked a rate it believed was in the range and provided the counterparty with a false spreadsheet that purported to calculate the rate but that did not, in fact, reflect relevant trades.  CFTC

Tagged in: Financial and Investment Fraud, Financial Institution Fraud, Fraud in CFTC-Regulated Markets,