Wells Fargo’s U.S. regulator Thursday declared it had banned former CEO John Stumpf from the banking trade and charged him and seven other former executives combined over $58 million in civil fined for their hands in the bank’s multi-year sales scandal.
The move by the Office of the Comptroller of the Currency (OCC) underlines a rare instance of senior executives being held accountable for failing to put a stop to wrongdoing at their bank.
It broke new ground for the regulator, which required Stumpf to pay $17.5 million to settle the suit against him – the largest ever fine it has collected from a person.
The OCC’s inquiry is one of several into the San Francisco stationed bank, with probes by the Justice Division and the Securities and Exchange Commission ongoing.
One person with information on the OCC probe said it was far-reaching and that more people could be charged.
Some of the OCC’s conclusions, though, contradict Wells Fargo’s 2017 board report into the scam, which mainly pinned the blame on a small number of executives, particularly the bank’s former retail banking chief Carrie Tolstedt.
However, on Thursday, the OCC stated many members of the bank’s senior management were guilty, a finding that’s likely to inflict further questions by legislators who may push for criminal convictions, stated Sieberg.
In addition to Stumpf, former human resources chief Hope Hardison and Michael Loughlin, ex-chief risk officer, settled the OCC’s charges for $2.25 million and $1.25 million the OCC stated.
Stumpf, who could not instantly be reached for remark, agreed to a lifetime ban on working for an OCC-regulated lender. He vaguely left the company in October 2016 after nearly a decade at the helm.