Wells Fargo neither admitted nor denied the Labor Department’s allegations, and noted that the transactions in question stopped in 2018.
“The Company strongly disagrees with the DOL’s allegations and believes it followed applicable laws in conducting the transactions,” the bank said Monday. However, “Wells Fargo believes resolving this legacy matter is in the best interest of the Company.”
The 401(k) plan borrowed from Wells Fargo to buy the preferred stock, then the bank used the dividend the repay the loans, offsetting what the bank would be obliged to pay in 401(k) contributions, the DOL found.
