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Wells Fargo Increases Estimate For Potential Legal Losses By $500 Mln

Wells Fargo (WFC), beset by a wave of government probes into suspected customer abuses, increase an estimate for potential legal losses by $500 million.

The company said it might have to spend as much as $2.7 billion more than what it already had set aside by the end of December to resolve investigations and other legal claims — increasing a $2.2 billion estimate from the end of September.

The bank disclosed the figure for additional "reasonably possible" legal losses — essentially a worst-case scenario — in a regulatory filing on Wednesday.

Wells Fargo said the increase "was due to a variety of matters, including the company's existing retail sales practices matters." The bank said that it is in preliminary or exploratory discussions to resolve such probes with the Justice Department and the Securities and Exchange Commission but that "there can be no assurance as to the outcome."

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