Wells Fargo says OCC terminated 2016 consent order (updated)
15/02/2024 16:45
(Adds details on consent order in paragraphs 2 and 6)
Feb 15 (Reuters) - Wells Fargo WFC.N said on Thursday
the Office of the Comptroller of the Currency (OCC) had
terminated a 2016 consent order tied to its sales practice
misconduct, sending the bank's shares up more than 5%.
The move marks the sixth consent order that regulators have
terminated for the bank since 2019, CEO Charlie Scharf said.
Wells Fargo has been working to fix compliance issues that
erupted from a 2016 scandal over its sales practices.
"I have repeatedly said that implementing a risk and control
framework appropriate for a bank of our size and complexity is
our top priority, and closing consent orders is an important
sign of our progress," Scharf said in a statement.
Scharf became CEO in 2019, the fourth person to lead Wells
Fargo since the scandal emerged. He has since been the face of
the bank's turnaround plan looking to cut costs after the lender
racked up billions in lawsuits and regulatory fines.
The bank is still operating under an asset cap that prevents
it from growing until regulators deem that it has fixed its
problems. The scandal has also led to hefty fines.
The OCC's 2016 consent order sought changes in the way Wells
Fargo offered and sold products and services to consumers and
required the lender to take additional actions to protect its
customers and employees.
(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini
Ganguli)
((Niket.Nishant@thomsonreuters.com;))