Former Wells Fargo execs fined for roles in sales scandal
Penalties range from $350,000 to $925,000
WASHINGTON - A U.S. bank regulator announced Monday it had fined three former executives at Wells Fargo Bank for their roles in the company's sales practices scandal.
The Office of the Comptroller of the Currency announced it had imposed the fines on three former executives from the bank's community bank arm, arguing they either did know or should have known about long-running problems with the bank's sales practices.
WELLS FARGO STARTS COST-CUTTING LAYOFFS AMID COVID-19 BLIGHT
The OCC imposed a $925,000 fine on Matthew Raphaelson, the former community bank group finance officer, and barred him from the banking industry. It also imposed a $400,000 fine on Kenneth Zimmerman, the bank's former head of community bank deposit products group, and a $350,000 fine on Tracy Kidd, the former head of community bank human resources.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WFC | WELLS FARGO & CO. | 73.44 | -0.69 | -0.93% |
The fines come nine months after the regulator imposed fines on eight other former bank executives, including former CEO John Stumpf.
WELLS FARGO TIGHTENS PURSE STRINGS DURING PANDEMIC
In a statement, a Wells Fargo spokeswoman acknowledged the bank's community bank had a "flawed" model, but that the firm was committed to fundamental changes.
"At the time of the sales practices issues, the company did not have in place the appropriate people, structure, processes, controls or culture to prevent the inappropriate conduct," said spokeswoman Jennifer Langan. "The company is different today, and we are doing what’s necessary to regain the trust of all stakeholders.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The regulator added that the settlements also require the individuals to cooperate with any other investigation related to the sales practices.