Erstwhile head of Wells Fargo asked not to conduct any banking activities after his role in a bank scandal. John Stumpf, the earlier head of Wells Fargo who led the bank’s credit rating scandal has been prohibited forever from working for a bank.
Comptroller and Currency Joseph Otting said that the measures declared by the Office of Comptroller of the Currency today fortify the agency’s anticipations that management and workers of national banks and federal savings associations offer equitable entrance to financial services, attend to customers fairly and satisfy with pertinent laws and regulations.
Eight erstwhile executives were penalized for their role in the sales fraud, including Carrie Tolstedt, head of the community banking division at the nucleus of the scandal. Stumpf has consented to pay $17.5 million as personal fine, and Tolstedt is encountering a sanction that managers say could top $25 million.
The once prospering San Francisco based banking goliath has encountered slackening demand for its facilities since the scandal was first unearthed in 2016. It has recompensed $185 million in fine for unscrupulous sales practices that involved instigating approximately 3.5 million fake accounts without customer consent. It has also resolved$110 million class action litigation and is presently encountering an elimination of litigations that could aggregate $3 billion.
Approximately 5300 staff members were discharged in links to the fraud. Stumpf immediately retired from the company in October 2016 not much time had passed after encountering acute questions from congressional panels.