Business

Former Wells Fargo CEO banned from banking industry and fined $17.5 million

Posted January 23, 2020 2:40 p.m. EST
Updated January 23, 2020 2:57 p.m. EST

— Former Wells Fargo CEO John Stumpf on Thursday agreed to a lifetime ban from the banking industry and a $17.5 million fine for his role in leading the bank through its massive fake accounts scandal.

In addition to Stumpf, the US Office of the Comptroller of the Currency fined several other former Wells Fargo executives about $40 million in connection to the bank's sales practice misconduct.

Wells Fargo said it accepted the government's findings.

"The OCC's actions are consistent with my belief that we should hold ourselves and individuals accountable. They also are consistent with our belief that significant parts of the operating model of our Community Bank were flawed," said Wells Fargo's current CEO Charles Scharf in a statement on Thursday.

Scharf became CEO in October.

"We are reviewing today's filings and will determine what, if any, further action by the Company is appropriate with respect to any of the named individuals," he added. "Wells Fargo will not make any remaining compensation payments that may be owed to these individuals while we review the filings."

Wells Fargo has struggled with the repercussions from its sales practices scandal for more than three years now. Milestones along the way includes the firing of 5,300 workers for creating millions of fake accounts, a $185 million fine and the two new CEOs to stir the company past its troubles.

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