Former Wells Fargo CEO Fined $17.5 Million And Banned From Banking
The fine was also accompanied with a lifetime ban from the banking industry. Both punishments were carried out by the Office of the Comptroller of the Currency. Stumpf is charged for failing to notice the proliferation of fake accounts that were started in the bank as a result of a pernicious sales culture that he helped enforce and foster.
The OCC also charged five other former executives. Regulators do not often implement charges that lead in lifetime bans. For example, regulators after the financial crisis faced some criticism because specific individuals responsible for the issuance of junk bonds were not punished.
Work culture at Wells Fargo was emphasized on increasing sales at any cost.
“I was in the 1991 Gulf War…. This is sad and hard for me to say, but I had less stress in the 1991 Gulf War than working for Wells Fargo,” an employee wrote.
The bank underestimated the public criticism that would result from the fake account scandal. Stumpf testified in front of Congress, specifically to Massachusetts’ Senator, Elizabeth Warren.