Wells Fargo hit by record $1bn penalty

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Wells Fargo has been fined a record $1bn by two US regulators to resolve investigations into car insurance and mortgage lending breaches.

The penalties have been imposed by the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency.

The bank must also reimburse customers in addition to the fine.

Both regulators said Wells agreed to settle without admitting any wrongdoing.

The fine is one of the largest on a big bank since Donald Trump was elected president.

The CFPB said Wells Fargo broke the law in the way it administered a mandatory insurance programme related to car loans.

The bureau has come under fire from Mr Trump, who wants to reduce its powers.

The latest penalty follows a sales scandal at Wells Fargo's retail banking business.

Last August, the lender said up to 3.5 million accounts may have been created for customers without their permission.

The accounts were created over a period of eight years.