Company: WFC-PC
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000072971-25-000201
Chunk: 223

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 15
Chunk 223
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 and rebates of $737 million and $1.4 billion for the second quarter and first half of 2025, respectively, and $690 million and $1.3 billion for the second quarter and first half of 2024, respectively, are presented net against the related revenue. In April 2025, we completed our acquisition of the remaining interest in our merchant services joint venture and recognized a net gain of $253 million in other noninterest income in Corporate. Following the acquisition, the revenue from this business has been included in card fees. Prior to the acquisition, our share of the net earnings of the joint venture, which was accounted for as an equity method investment, was included in other noninterest income.

Wells Fargo & Company121

Note 18:  Revenue and Expenses (continued)

Expenses

OPERATING LOSSES.  Operating losses consist of expenses related to:•Legal actions such as litigation and regulatory matters. For additional information on legal actions, see Note 10 (Legal Actions);•Customer remediation activities, which are associated with our efforts to identify areas or instances where customers may have experienced financial harm and provide remediation as appropriate. We have accrued for the probable and estimable costs related to our customer remediation activities. We had $145 million and $236 million of accrued liabilities for customer remediation activities as of June 30, 2025, and December 31, 2024, respectively. Amounts may change based on additional facts and information, as well as ongoing reviews and communications with our regulators; and•Other business activities such as deposit overdraft losses, fraud losses, and isolated instances of customer redress.Table 18.2 provides the components of our operating losses included in our consolidated statement of income.Table 18.2:  Operating LossesQuarter ended June 30,Six months ended June 30,(in millions)2025202420252024Legal actions$122 135 $103 152 Customer remediation12 184 22 612 Other177 174 329 362 Total operating losses$311 493 $454 1,126 Operating losses may have significant variability given the inherent and unpredictable nature of legal actions and customer remediation activities. The timing and determination of the amount of any associated losses for these matters depends on a variety of factors, some of which are outside of our control.OTHER EXPENSES.  Regulatory Charges and Assessments expense, which is included in other noninterest expense, was $