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The U.S. government on Thursday announced that former Wells Fargo CEO John Stumpf is barred from ever working at a bank and will pay $17.5 million in connection to scandals at Wells that first came to light a few years ago under his tenure.
The notice from the Office of the Comptroller of the Currency said the regulator plans to target a host of individuals, including former executives, for their role in creating millions of fake bank accounts to meet sales quotas.
“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,” stated Comptroller of the Currency Joseph Otting.
Specifically, Stumpf’s settlement declares he shall not participate “in any manner” at any bank regulated by the OCC nor participate or attempt to participate in a bank’s corporate board votes.
The nation’s fourth-largest bank, Wells Fargo has remained muddled in restructuring and regulatory reforms since 2016.
The scandal has had lasting consequences for the San-Francisco-based bank, once a rapidly growing lender with eye-popping profits. In recent years, however, Wells has stalled between stagnant revenues and an urgent need to cost cuts.
In light of the announcement, current Wells Fargo CEO Charlie Scharf told the bank’s employees that “the OCC’s actions are consistent with my belief that we should hold ourselves and individuals accountable.”
“They also are consistent with our belief that significant parts of the operating model of our Community Bank were flawed,” he added. “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.”
“This was inexcusable,” Scharf added. “Our customers and you all deserved more from the leadership of this Company.”
