Wells Fargo to pay $85m fine

Wells Fargo & Co, the largest mortgage lender in the US, has agreed to pay a $85m (£52.6m) civil penalty to the Federal Reserve Board and will compensate borrowers who were allegedly steered into more costly subprime loans with higher interest rates during the housing boom. The fine is the largest ever imposed by the Federal Reserve in a consumer-enforcement case, the Fed said yesterday. The bank, which admits no wrongdoing, might have to pay up to $20,000 in restitution to borrowers affected by the alleged practices.