Wells Fargo & Co., with branches throughout Connecticut, is raising to $1.7 billion its estimate of the amount of money it may need to cover potential legal losses related to its mortgage-foreclosure practices, The Minneapolis/St. Paul Business Journal reports.
Wells Fargo, like all banks, has a reserve for lawsuits that are lost or settled. At the end of 2010, the bank said it might need as much as $1.2 billion in addition to its usual reserve to cover potential losses regarding its foreclosure practices.
Now the bank says it could need as much as $1.7 billion, according to its quarterly filing with the U.S. Securities and Exchange Commission.
Wells Fargo spokeswoman Mary Eshet says just about all of the estimated increase is due to foreclosure-related matters, as Wells and other banks have faced criticism about how they have handled foreclosure paperwork.
San Francisco-based Wells Fargo says it fears regulators could fine it for its foreclosure practices.
