Tagged: wells Fargo scandal

OCC Settles Penalty Action with Former Wells Fargo CEO for $17.5 Million and Issues Penalty Notices Against Five Former Wells Fargo Officials

OCC Settles Penalty Action with Former Wells Fargo CEO for $17.5 Million and Issues Penalty Notices Against Five Former Wells Fargo Officials

The Office of the Comptroller of Currency (OCC) announced a $17.5 million settlement with former Wells Fargo Bank CEO John Stumpf’s role in the sales practices misconduct scandal.  In addition, the OCC announced settlements with two other Wells Fargo officials: (1) Hope Hardison, former Chief Administrative Officer and Director of Human Resources, Cease and Desist Order and $2.25 million civil money penalty; and (2) Michael...

Federal Reserve Hits Wells Fargo with Unprecedented Enforcement Action (Part I of II)

Federal Reserve Hits Wells Fargo with Unprecedented Enforcement Action (Part I of II)

In an extraordinary action, with significant ramifications for the financial industry, the Federal Reserve recently announced a series of enforcement actions against Wells Fargo. On Friday, February 2, 2018, which was then-Chairwoman Yellen’s last day in office, the Federal Reserve announced an enforcement action against Wells Fargo for its corporate governance failures and poor record of remediation. (The Press Release and Enforcement Documents are Here)....

Tales from the Corporate Scandal Crypt: GM, VimpelCom, VW and Wells Fargo

Tales from the Corporate Scandal Crypt: GM, VimpelCom, VW and Wells Fargo

We are fascinated by corporate scandals. Since the 1980s, the US public has enjoyed unraveling corporate scandals, and vilifying corporate leaders caught in the web of deceit and misconduct. I am sure there are historical trends and themes for US public reaction to corporate scandals and the political response to the scandal of the day. The US public is rightfully outraged over the Justice Department’s...

Wells Fargo’s Desperate Need for a Compliance and Business Ethics Function (Part III of III)

Wells Fargo’s Desperate Need for a Compliance and Business Ethics Function (Part III of III)

While reading the independent directors’ report on the Wells Fargo sales incentives scandal, you will be overwhelmed by the feeling of frustration. At the same time, what is described in the report is the extent to which every control function came up against the problem staring them in the face – Wells Fargo’s sales incentive program was out of control. Notwithstanding the 20-20 hindsight pictured...

Can Wells Fargo Fix its Defective Culture?  (Part I of III)

Can Wells Fargo Fix its Defective Culture? (Part I of III)

The more you learn about Wells Fargo’s culture problems, the more difficult the problems become. But you have to start somewhere, and assuming that Wells Fargo really is committed to addressing the serious problems they face, this will take a long time and a lot of work. Wells Fargo is really at the early stages of a massive remediation project. The board has essentially taken...

Who is Responsible for a Company’s Mood in the Middle? – the Wells Fargo Fiasco

Who is Responsible for a Company’s Mood in the Middle? – the Wells Fargo Fiasco

Lauren Connell, Managing Associate at The Volkov Law Group, joins us again for a posting on the Wells Fargo scandal.  Lauren can be reached at [email protected]. Wells Fargo’s cultural tone is not easily segregated between “top,” “middle” and “bottom.”  Despite the recent cross-selling scandal, in which the CFPB led an enforcement action whose fines total a whopping $185 million, Wells Fargo’s CEO John Stumpf reluctantly...