Wells Fargo update.

Instructions on how to seal a bag of gold and gold dust for shipping, from the days when Wells Fargo was the gold standard of integrity. Photo by James Ulvog.

There are still a few enforcement actions ongoing over the Wells Fargo fake account fiasco, primarily individual cases against senior officials from a few agencies who haven’t previously settled the charges.

11/13/20 – Wall Street Journal – Wells Fargo Ex-CEO Settles SEC Claims, Former Consumer-Unit Head Faces Fraud Case –  The former CEO settled up with the SEC, agreeing to pay a $2.5 penalty for his role in the fake account scandal. As is typical, he neither admitted nor denied the claims.

Article reminds us he previously paid $17.5M penalty to OCC and was also banned from working in the banking industry.

So that adds up to $20M of civil penalties for him. No way of guessing how many millions of dollars he spent on attorneys.

Sealed bags of gold and gold dust. Photo from Wells Fargo San Diego museum by James Ulvog.

In a separate case, the SEC filed a civil fraud charges against the former head of the consumer-banking division. She was a key player in pushing the cross-sell concept which resulted in staff opening multiple accounts for customers without the customer’s knowledge or consent.

The SEC looking for a fine and a ban from working at the senior level of a public company.

If I understand the article correctly, the OCC still has a case pending against her, seeking a $25M fine and permanent ban from the banking industry.

The two previously had $75M of compensation clawed back by Wells Fargo.

Wells Fargo strong box, with illustrative contents. From Wells Fargo’s San Diego museum. Photo by James Ulvog.

 

Leave a Comment

Your email address will not be published.