Enforcement Actions Against Wells Fargo Executives - The OCC completed enforcement actions against 11 former Wells Fargo senior bank executives, with the last three actions announced on January 14 [1] - The enforcement actions stemmed from administrative litigation initiated by the OCC's Notice of Charges filed in January 2020 [1] - The OCC found that under pressure to meet unreasonable sales goals, thousands of Wells Fargo employees engaged in widespread sales practices misconduct [2] - The latest enforcement actions involved three former senior executives from Wells Fargo Bank, N A, Sioux Falls, South Dakota, for their actions from 2013 to 2016 [2] Findings and Penalties - The OCC found that the three executives had unsafe or unsound banking practices, including failing to challenge the bank's incentive compensation program and failing to manage audit activity to detect sales practices misconduct [3] - The three executives were ordered to pay civil money penalties of 7 million, and 43 2 million [4] Historical Context and Regulatory Actions - Wells Fargo was fined by the OCC, the CFPB, and the City and County of Los Angeles in September 2016 due to issues with the bank's sales culture and employees being pressured to meet sales targets [5] - In February, the OCC terminated a 2016 consent order against Wells Fargo related to deficiencies and unsafe or unsound practices in the bank's risk management and sales practices [6] - The OCC stated that the safety and soundness of the bank and its compliance with laws and regulations no longer required the continued existence of the order [6] - Wells Fargo had to revamp its product and service sales practices as part of the consent order regarding sales practice misconduct [6]
OCC Announces 3 Enforcement Actions Against Wells Fargo Leaders