Long accused of being too soft, a U.S. bank regulator has surprised its critics ...
WASHINGTON - Long accused of being too soft, a U.S. bank regulator has surprised its critics with tough treatment of scandal-ridden lender Wells Fargo , culminating on Thursday in more than$58 million in fines against eight former executives at the bank.
But when it comes to Wells Fargo’s sales practices, Otting has consistently been a harsh critic, driving penalties against the bank which have broken new ground. One person with knowledge of the matter said Wells Fargo’s failure to swiftly fix systemic misconduct has angered Otting, precisely because he spent decades as a banker and felt he was held to high standards.
After watchdogs including the OCC failed to charge senior Wall Street executives for their role in the 2007-2009 financial crisis, lawmakers have pressed them to hold more individuals responsible for corporate wrongdoing. Proving personal culpability, though, is legally tough, which makes Thursday’s charges all the more striking.
On Thursday, Otting said in a statement that the charges “reinforce the agency’s expectations that management and employees ... provide fair access to financial services, treat customers fairly and comply with applicable laws.”In addition to Thursday’s charges, the OCC fined Wells Fargo $500 million in 2018 for product mis-selling, only the second time it has dished out a penalty of that size.
The comptroller’s public loss of confidence in Sloan contributed to his abrupt departure later that month, Reuters reported at the time.
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