Data error inflated Wells Fargo’s op risk capital by $5 billion

Sharp fall in Q1 RWAs followed removal of duplicate data

Faulty data led Wells Fargo to overstate its operational risk capital charge for the fourth quarter of 2019 by $5.2 billion, raising further questions on the soundness of the bank’s op risk management.

In its regulatory filing for the first quarter, the San Francisco-based lender revised its op risk-weighted assets (RWAs) amount as of Q4 2019 to $338.7 billion. The previous filing had pegged the amount at $403.6 billion, 19% higher. Minimum regulatory capital charges are set at 8% of RWAs