NEW YORK – Nearly eight years after being placed under a consent order as the result of an enormous fraud, the Office of the Comptroller of the Currency has terminated the restrictions that have been in place since September of 2016.
The bank acknowledged it had pressured employees to open millions of fake accounts as they sought to meet extremely aggressive cross-sales goals. Wells Fargo would eventually pay more than $185 million in fines and fire more than 5,000 employees as a result.
The Office of the Comptroller of the Currency’s order required the bank to overhaul how it sold financial products to customers and provide additional consumer protections, as well as employee protections for whistleblowers.
Since that scandal, and a number of others that followed, Wells Fargo has changed its board and management team.
Other Consent Orders
Wells Fargo remains under a rare Federal Reserve consent order that placed a limit on its growth until it addressed issues with its sales culture. In all, Wells Fargo still has eight consent orders that govern its operations, down from a one-time high of 14.
The news the OCC had terminated its order sent Wells Fargo stock up sharply.
Including the Fed's order, Wells Fargo still has eight consent orders that govern its operations. That's down from 14 when Scharf took over the bank. Management says they still have work to do.
“We’ve changed the company across a number of dimensions," said Scott Powell, Well Fargo's chief operating officer, in an interview. Powell joined the bank roughly around the same time as Scharf.
“We’re doing better for customers and employees and we keep working to address the risk issues that are still outstanding.”
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