Ex-Wells Fargo leaders personally face $59 million in fines
to meet sales goals, garnering criticism across the political spectrum, from Democratic Sen. Elizabeth Warren to Republican President Trump. The phony-accounts scandal was just the first in a slew of retail banking issues that subsequently came to light and prompted regulatory fallout that is in many cases unprecedented for a major bank,This is the first public step the OCC has taken against former executives related to Wells Fargo’s problems.
During the OCC’s investigation, Stumpf and others admitted that the bank had engaged in systemic sales practice misconduct dating from the early 2000s. Tolstedt and Russ Anderson “asserted their 5th Amendment right against self-incrimination and refused to answer all substantive questions about sales practice misconduct,” the regulator wrote in a notice of charges.
• “At all times, Mr. Strother acted with the utmost integrity and transparency, including with the bank’s board, senior management, and its regulators,” Walt Brown, Strother’s attorney at Orrick Herrington & Sutcliffe, said in an emailed statement. “The OCC’s charges against Mr. Strother are false and unfounded, and he intends to vigorously defend against them.”
Stumpf “failed to respond to numerous warning signs, including many team member complaints submitted directly to his office regarding pervasive sales pressure, fear of termination for not meeting unreasonable sales goals, and illegal and unethical sales activity across the Community Bank,” according to the OCC order he signed this week.
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