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Wells Fargo faces new restrictions from banking regulator

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A federal banking regulator has imposed tighter restrictions to Wells Fargo & Co.’s settlement regarding the company’s fraudulent account sales scandal. The Office of the Comptroller of the Currency released a statement announcing the bank will be required to seek permission before changing business plans, directors and senior executive officers and will be banned from offering “golden parachute” payments to departing employees. The restrictions implemented Friday altered the terms of the $185 million settlement agreement the bank negotiated after the widespread scam in which employees opened millions of false accounts to meet quotas and generate sales bonuses.

In addition to the $185 million fine the bank was required to pay full restitution totaling $2.5 million and hire an independent consultant to review its procedures. OCC spokesman Bryan Hubbard told Bloomberg he could not comment on why the new restrictions were imposed and added it was unclear how long they will remain in place. Wells Fargo spokeswoman Jennifer Dunn said the company would continue to cooperate with the OCC and follow the new restrictions. “This will not inhibit our ability to execute our strategy, rebuild trust and serve our customers, and continue to operate the company for the benefit of all our stakeholders,” she said.

– UPI

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