Financial services group Wells Fargo & Co. is close to settling a hefty fine of $1 billion by two US federal regulators for its risk management policies in what would mark as one of the most aggressive actions by regulators during the Trump administration against a big bank.

The potential $1 billion fine would be the largest ever imposed by the two regulators and will be another blow to the San Francisco-based firm, which has been under severe federal scrutiny since revealing in 2016 that it had created millions of fraudulent accounts without its clients’ consent.

Such penalty would also be a significant move for the Consumer Financial Protection Bureau (CFPB), the bank's chief regulator, under Mick Mulvaney, the acting director chosen by President Donald Trump.