John Stumpf: Ex-Wells Fargo boss pays $ 17.5m to settle charges thumbnail

John Stumpf: Ex-Wells Fargo boss pays $ 17.5m to settle charges

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Now ex-Wells Fargo CEO John Stumpf testifying at a Senate Banking, Housing, and Urban Affairs hearing in 2016.Image copyright Getty Photos

Used Wells Fargo chief govt John Stumpf is to pay $17.5m (£13.3m) to settle charges over the bank’s unfounded accounts scandal.

He changed into once additionally banned from working in the financial enterprise “in any manner” for lifestyles.

Or now now not it is a uncommon instance of a top banking govt being for my fragment punished for failing to dwell misconduct.

The charges came after it changed into once revealed that millions of unfounded bank accounts had been situation up to meet gross sales targets.

In August 2017, the lender statedup to three.5 million accounts would perhaps well perhaps fair were createdfor clients without their permission.

The accounts were created over a period of eight years.

Mr Stumpf’s lifetime ban is more severe than anything confronted by financial enterprise executives in the wake of the 2008 financial disaster.

The Whine of job of Comptroller of the Currency – the administrator of the federal banking gadget – additionally stated it had settled with two diversified former executives, and announced charges in opposition to five diversified former officials.

When Mr Stumpf left the bank after the scandal changed into once first revealed in 2016 he came beneath attack from Massachusetts senator – and now Democrat presidential hopeful – Elizabeth Warren on Twitter.

At the time it changed into once reported that he had walked a long way from the bank with $130m.

In accordance with the ruling, Wells Fargo’s chief govt Charlie Scharf wrote to staff asserting: “At the time of the gross sales practices components, the company did now now not personal in speak the acceptable of us, improvement, processes, controls, or culture to dwell the wicked habits.

“This changed into once inexcusable. Our clients and you all deserved more from the leadership of this company.”

Or now now not it is a long way the most modern regulatory blow to the worried company.

In 2018 Wells Fargo changed into once fined a document $1bn by two US regulators to resolve investigations into car insurance coverage and mortgage lending breaches.

The penalties were imposed by the Client Monetary Security Bureau (CFPB) and the Whine of job of the Comptroller of the Currency.

As well to to the entertaining, the bank changed into once additionally ordered to reimburse clients.

Both regulators stated Wells Fargo agreed to settle without admitting any wrongdoing.

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