The bank also stated that $131.8 million would be paid out to eligible current and former plan participants, adding that it "strongly disagrees with the DOL's allegations."
WFC provides some of its preferred stock to employees as part of a retirement package. The Department of Labor claimed that from 2013 to 2018, the funds under the plan paid more for the preferred stock than it was worth. Wells first revealed the federal investigation in February.
The fourth largest bank in the United States has been the target of several regulatory crackdowns in recent years, including those related to a sales scandal that erupted publicly in 2016.
CEO Charlie Scharf has promised to get the bank "on the right track" and to resolve regulatory issues as soon as possible.