Wells Fargo’s ex-boss receives lifetime banking ban
The ex-boss of Wells Fargo has received a lifetime ban from the financial industry and has agreed to pay $17.5m (£13.3m) to settle charges concerning the US bank’s false accounts scandal.
John Stumpf cannot work “in any manner” in the finance sector ever again after revelations that the bank set up millions of fake bank accounts to hit sales targets.
Up to 3.5m fake accounts may have been created over an eight-year period for customers without their consent, the bank admitted in August 2017.
Stumpf’s lifetime ban is a tougher sanction than any punishment levied against banking bosses after the 2008 financial crisis.
He left the bank after the scandal first came to light in 2016, and at the time reportedly left with $130m.
The US Office of Comptroller of Currency (OCC), which presides over the US banking system, also announced charges against five ex-officials. And it settled with two other former execs.
The OCC also said Carrie Tolstedt, the former head of Wells Fargo’s Community Bank unit is still fighting allegations against her.
“At the time of the sales practices issues, the company did not have in place the appropriate people, structure, processes, controls, or culture to prevent the inappropriate conduct,” current Wells Fargo boss Charlie Scharf told staff.
“This was inexcusable. Our customers and you all deserved more from the leadership of this company.”
The bank added that it “will not make any remaining compensation payments that may be owed to these individuals” named in the OCC’s update.
“The actions announced by the OCC today reinforce the agency’s expectations that management and employees of national banks and federal savings associations provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations,” OCC boss Joseph Otting said.