Wells Fargo Discloses Federal Probes Regarding Use of LIHTC
Wells Fargo & Co. recently disclosed in a regulatory filing that multiple U.S. agencies are probing into the bank's use of low-income housing tax credits. "Federal government agencies have undertaken formal or informal inquiries or investigations" about how Wells Fargo bought, and negotiated the purchase of, "certain federal low-income housing tax credits in connection with the financing of low-income housing developments," the bank said on its 10-Q filing with the U.S. Securities and Exchange Commission.
This disclosure marks the latest federal inquiry into Wells Fargo’s conduct. Incorrect fees in the firm’s wealth management unit, inconsistent pricing in the foreign-exchange business, and employees improperly altering documents in the wholesale unit are among other government inquiries at the bank.