Exception Tracking Spreadsheet (TicklerTrax™)
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OCC acts against former Wells Fargo Bank management
The OCC announced Thursday it has issued a notice of charges against five former senior executives of Wells Fargo Bank, N.A., Sioux Falls, South Dakota, and announced settlements with the bank’s former Chief Executive Officer (CEO) and other members of the bank’s operating committee. These actions stem from the executive's role in the bank's systemic sale practices misconduct (see "Incentive program costs Wells Fargo $185 M in CMPs," 9/9/2016).
The current or former executives charged and the relief sought by the notice of charges include:
- Carrie Tolstedt, head of Wells Fargo's Community Bank -- Prohibition order and $25 million civil money penalty (CMP)
- Claudia Russ Anderson, Community Bank group risk officer -- Prohibition order and $5 million CMP
- James Strother, general counsel, Cease & Desist (C&D) order and $5 million CMP
- David Julian, chief auditor -- C&D order and $2 million CMP
- Paul McLinko, executive audit director -- C&D order and $500,000 CMP
The OCC stated the notice of charges alleges those executives failed to adequately perform their duties and responsibilities, which contributed to the bank’s systemic problems with sales practices misconduct from 2002 until October 2016, and the misconduct of those individuals allowed the practices to continue for years, affecting millions of bank customers and thousands of lower level bank employees. Additionally, the notice states that Ms. Russ Anderson also made false and misleading statements to the OCC and actively obstructed the OCC’s examinations of the bank’s sales practices. Under federal law, each of those individuals may request a hearing challenging the allegations and relief sought.
The OCC's press release also announced it had issued consent orders against three former Wells Fargo executives for their roles in the bank's sales practices misconduct:
- a prohibition order and a $17,500,000 CMP against former bank Chairman and CEO John Stumpf;
- a personal cease and desist order and a $2,250,000 CMP against the bank’s former Chief Administrative Officer and Director of Corporate Human Resources Hope Hardison; and
- a personal cease and desist order and a $1,250,000 CMP against its former Chief Risk Officer Michael Loughlin.