tyb's
Wells Fargo’s Ex-Chief Fined $17.5 Million Over Fake Accounts
John Stumpf and two other former executives were fined Thursday, and Wells Fargo’s chief federal regulator said it would seek penalties against five others.
Wells Fargo’s main federal regulator took punitive action against the bank’s former chief executive, John G. Stumpf, and seven other executives on Thursday, seeking millions in personal fines from the leaders it said were accountable for the bank’s toxic sales culture and illegal acts. Mr. Stumpf agreed to a lifetime ban from the banking industry and a fine of $17.5 million in a settlement with the Office of the Comptroller of the Currency. Two other former executives agreed to lesser fines and also face restrictions on their work in the industry.
The action was a rare case of federal officials holding top executives accountable for their company’s misdeeds, which included foisting unwanted products and sham bank accounts on millions of customers. More charges may be coming: A Justice Department investigation into the actions of Wells Fargo and its leaders remains open. In announcing its civil action, the banking regulator sharply rebuked Wells Fargo’s former leaders for favoring profits and other market rewards over protecting its customers. “The bank had better tools and systems to detect employees who did not meet unreasonable sales goals than it did to catch employees who engaged in sales practices misconduct,” the regulator said.
In addition to the three executives who reached settlements, the office said it was bringing enforcement actions against five others. It sought its largest penalty — a $25 million fine — from Carrie L. Tolstedt, the bank’s former retail banking leader.
Ms. Tolstedt, who left the bank in 2016, is fighting the agency’s civil charges against her. She “acted with the utmost integrity” and will be vindicated by “a full and fair examination of the facts,” her lawyer, Enu Mainigi, said in a statement.
Mr. Stumpf, in a sworn statement to the O.C.C., blamed Ms. Tolstedt and others for what he acknowledged was “systemic” misconduct throughout the bank.
Wells Fargo’s problems erupted into public view in late 2016, setting off a crisis that continues to reverberate more than three years later. Mr. Stumpf, the chief executive at the time, was quickly ousted. His successor, Timothy J. Sloan, resigned last year after failing to quell the bank’s turmoil.
https://finance.yahoo.com/news/us-regulator-fines-ex-wells-fargo-ceo-17-192307989.html
2 Spanish Falcons, Swedish G4 and Czech Airbus AF heading West from southern Israel
heard the same bird on that too.