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Jan. 23, 2020, 2:22 p.m. EST

OCC seeks fines and bans against 5 ex-Wells Fargo executives, bans former CEO Stumpf for life

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By Ciara Linnane

The Office of the Comptroller of the Currency issued a notice of charges against five former Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC +0.21% executives on Thursday, for their role in a sales-practices scandal that led to the creation of millions of fake bank accounts. "The actions announced by the OCC today reinforce the agency's expectations that management and employees of national banks and federal savings associations provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations," Comptroller of the Currency Joseph Otting said in a statement. The agency is seeking to fine Carrie Tolstedt, former head of the bank's retail operations, $25 million in the form of a civil money penalty (CMP) and to issue her a lifetime prohibition order from participating in the banking industry. It is seeking to fine Claudia Russ Anderson, former community bank group risk officer, $5 million and issue her a prohibition order. It is seeking to fine James Strother, former general counsel, $5 million along with a personal cease & desist order (PC&D). A PC&D requires the individual to take remedial actions or refrain from certain conduct in future dealings in the banking industry. It is seeking to fine former Chief Auditor David Julian $2 million with a PC&D order, to fine former Executive Audit Director Paul McLinko $500,000 with a PC&D order. The agency said it has also issued a prohibition order and a $17.5 million CMP against former Chairman and CEO John Stumpf; a PC&D order and a $2.25 million CMP against the bank's former Chief Administrative Officer and Director of Corporate Human Resources Hope Hardison; and a PC&D order and assessment of a $1.25 million CMP against former Chief Risk Officer Michael Loughlin for their roles in the bank's sales practices misconduct. Wells Fargo responded by saying it will not make any further compensation payments to the individuals named, while it reviews the filings. Shares were slightly lower Thursday and have fallen 3.6% in the last 12 months, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.18% has gained 26%.

Read the full story:
Wells Fargo worker says employment at the bank was more stressful than Gulf War military service

/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 48.22
+0.10 +0.21%
Volume: 15.53M
Feb. 14, 2020 6:30p
P/E Ratio
11.99
Dividend Yield
4.23%
Market Cap
$199.36 billion
Rev. per Employee
$392,114
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/zigman2/quotes/210599714/realtime
US : S&P US
3,380.16
+6.22 +0.18%
Volume: 1.67B
Feb. 14, 2020 5:06p
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