Wells Fargo says Federal Reserve sanctions on the bank after a fake accounts scandal and other problems could reduce the embattled bank's profits by as much as $400 million this year.

File photo taken in 2012 shows a Wells Fargo sign is displayed one of the bank's branches in New York City.
CX Matiash, AP

The San Francisco-based bank issued the estimate after Friday's consent order with the Fed required the replacement of four board members and restricted Wells Fargo's financial growth.

The Fed cited "consumer abuses and compliance breakdowns," referring to the bank's opening of 3.5 million accounts that may not have been authorized by customers. Federal regulators and Los Angeles legal authorities in 2016 hit Wells Fargo with $185 million in penalties over the episode.

The bank has also said it would make $80 million in refunds to more than 570,000 of its auto loan customers who were charged for insurance without their knowledge. Additionally, Wells Fargo plans refunds for customers who were charged extra fees to extend rate locks on mortgages because of delays caused by the bank.

"We cannot tolerate pervasive and persistent misconduct at any bank, and the consumers harmed by Wells Fargo expect that robust and comprehensive reforms will be put in place to make certain that the abuses do not occur again," Janet Yellen said in a statement issued on her last day as the Fed's chair.

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While its banking industry rivals grown, the Fed sanctions will hold Well's Fargo's total consolidated assets to the $2 trillion level measured as of Dec. 31, 2017. Three current board members will be replaced by April, and a fourth will depart by the end of the year.

Wells Fargo has 60 days to give the Fed the bank's plans to improve oversight and governance, as well as enhance risk management. After the plans are submitted and approved, the bank said it would hire independent third parties to conduct an initial risk management review by Sept. 30.

Wells Fargo's preliminary analysis found that actions needed to run between $300 million and $400 million this year, the bank said.

The bank said the asset cap will remain in effect at least until the strengthened oversight plans and the findings of the outside review win Fed approval.

During the process, "we will continue to serve our customers' financial needs, including saving, borrowing and investing, as we help them succeed financially," the bank said

.Wells Fargo also recommitted to achieving $4 billion in cost cuts by the end of 2019 and said it would continue to return more capital to shareholders this year.  Information about the company's return on equity and return on assets will be disclosed at the May 2018 Investor Day presentation, the bank said.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc