US bank Wells Fargo was fined Thursday a further $ 250 million for failing to implement demands made in 2018 by the banking sector regulator after the fictitious account scandal.
This fine was imposed by the Office of the Comptroller of the Currency (OCC), one of the main regulators of the banking sector in the United States apart from the Federal Reserve (Fed). “Wells Fargo did not implement the measures ordered in 2018 against it by the OCC. This is unacceptable, ”said acting OCC official Michael Hsu.
Between 2002 and 2017, Wells Fargo admitted to having opened 3.5 million fictitious accounts, which had allowed its employees to earn premiums related to the sale of new products to customers, and charged unnecessary insurance premiums. to over half a million customers on their auto loans.
In 2018, the OCC and the Consumer Financial Protection Bureau (CFPB) fined the California bank $ 1 billion, and ordered it to return aggrieved customers for amounts improperly taken from them. and strengthen its risk management program.
Over $ 7 billion in penalties already disbursed
Wells Fargo is also, Thursday, imposed “limits (its) future activities until the existing problems in the mortgage service are adequately resolved,” continued Michael Hsu.
“OCC’s actions today indicate the work we must continue to do to address long-standing and significant gaps,” Charlie Scharf, CEO of Wells Fargo, said in a statement.
In February 2020, the bank was fined $ 3 billion for the fictitious accounts. Wells Fargo has already paid more than $ 7 billion in financial penalties related to its business practices since the outbreak of this case.
On the subject:
John Stumpf, head of Wells Fargo from 2005 to October 2016, was banned for life from banking by the OCC. As a result of these embezzlements, more than 5,000 employees were made redundant.