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☆ Wells Fargo says regulator has lifted a key penalty tied to its 2016 fake accounts scandal
▼ + stars: | 2024-02-15 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

NEW YORK, NEW YORK - MAY 17: President and CEO of Wells Fargo Charlie Scharf attends The Future of Everything presented by the Wall Street Journal at Spring Studios on May 17, 2022 in New York City. (Photo by Steven Ferdman/Getty Images)Wells Fargo said Thursday one of its primary regulators has lifted a key penalty tied to its 2016 fake accounts scandal. Wells Fargo, one of the country's largest retail banks, has retired six consent orders since 2019, the year that CEO Charlie Scharf took over. The 2016 fake accounts scandal and related consent order ignited a wave of scrutiny on the bank that revealed problems related to the servicing of mortgages, auto loans and other consumer accounts. The attention tarnished the bank's reputation and forced the retirement of both ex-CEO John Stumpf in 2016 and successor Tim Sloan in 2019.

Persons: Wells, Charlie Scharf, Steven Ferdman, Wells Fargo, Scharf, John Stumpf, Tim Sloan, —, Leslie Picker Organizations: NEW, Wall, Spring Studios, Currency, Federal Reserve Locations: New York City, Wells Fargo

☆ Wells Fargo: Former executive avoids prison time for her role in fake-accounts fraud
▼ + stars: | 2023-09-15 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

New York CNN —Former Wells Fargo executive Carrie Tolstedt was sentenced to three years’ probation on Friday for her role in the bank’s sprawling fake-accounts scandal. Wells Fargo has spent billions of dollars over the past eight years to settle allegations related to the accounts scandal, in which Tolstedt played a key role. Tolstedt, the only Wells Fargo executive to face criminal charges in the scheme, paid $17 million to settle a civil case with the the OCC, and $3 million to settle with the SEC. She received a $125 million retirement package when she left Wells Fargo, though the bank has clawed back about $67 million of that. Wells Fargo has struggled to get its house in order since the fake account scandal.

Persons: Carrie Tolstedt, Tolstedt, Wells Fargo, Wells, John Stumpf, Stumpf, Jeff Skilling, — CNN’s Matt Egan Organizations: New, New York CNN, Former Wells, Securities and Exchange Commission, OCC, SEC, Wells Locations: New York, Wells Fargo’s, Wells Fargo

Wells Fargo Bank branch is seen in New York City, U.S., March 17, 2020. REUTERS/Jeenah Moon/File Photo Acquire Licensing RightsCompanies Wells Fargo & Co FollowSept 15 (Reuters) - The former head of Wells Fargo's (WFC.N) retail bank on Friday avoided prison time after pleading guilty to an obstruction charge related to the bank's sweeping fake-accounts scandal. Prosecutors had sought a one-year prison term for Tolstedt, but the judge said it would unfairly make Tolstedt appear solely responsible for Wells Fargo's misconduct. That cap remains in place, though Wells Fargo remains the fourth-largest U.S. bank. Wells Fargo has also clawed back tens of millions of dollars of her pay.

Persons: Wells Fargo's, Carrie Tolstedt, Josephine Staton, Wells, Tolstedt, Martin Estrada, Wells Fargo, John Stumpf, Stumpf, Chris Prentice, Jonathan Stempel, Jaiveer Singh, Shounak Dasgupta, Matthew Lewis Organizations: REUTERS, Companies Wells, U.S, San, Wells, Prosecutors, Federal Reserve, Securities and Exchange Commission, Thomson Locations: Wells Fargo Bank, New York City, U.S, Los Angeles, San Francisco, America, Wells, New York, Bengaluru

Companies Wells Fargo & Co FollowWASHINGTON, March 15 (Reuters) - The former head of Wells Fargo's retail bank is facing prison time after pleading guilty to obstructing a bank examination in relation to the sweeping phony accounts scandal that roiled the bank in 2016. An attorney for Tolstedt, who ran the bank's retail and small business lending from 2007 to 2016, declined to comment. But, in this case, Ms. Tolstedt took steps to cover up misconduct at Wells Fargo," Joseph McNally, acting U.S. attorney for the central district of California, said in a statement. A spokesperson for Wells Fargo declined to comment. The development marks a rare instance of a senior bank executive facing prison time as a result of their job, but some said it does not go far enough.

Those are some of the infractions allegedly committed by Wells Fargo that has led the bank to agree to a $3.7 billion settlement with the Consumer Financial Protection Bureau. “The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. “As we have said before, we and our regulators have identified a series of unacceptable practices that we have been working systematically to change and provide customer remediation where warranted," Wells Fargo CEO Charlie Scharf said. "This far-reaching agreement is an important milestone in our work to transform the operating practices at Wells Fargo and to put these issues behind us. Wells Fargo has been the target of regulators since at least 2011, when reports of its strategy to cross-sell multiple products to customers first emerged.

Dec 20 (Reuters) - Wells Fargo & Co (WFC.N) agreed to pay $3.7 billion to settle charges from a U.S. consumer watchdog over widespread mismanagement of car loans, mortgages and bank accounts, the regulator said Tuesday. "Wells Fargo is a corporate recidivist that puts one-third of American households at risk of harm,” CFPB Director Rohit Chopra told journalists in a briefing. Shares of Wells Fargo were down less than 1% in late morning trading. Wells Fargo has faced multiple enforcement actions taken by the CFPB and other banking regulators for violations across the bank's business lines. Scharf became CEO in 2019, the fourth person to lead Wells Fargo since the scandal emerged.

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