Former Wells Fargo CEO John Stumpf banned for life from banking, ordered to pay $17.5M

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John Stumpf, the previous CEO of Wells Fargo, has been banned for life from banking. The announcement was made on Thursday January 23 by the U.S. authorities’s Office of the Comptroller of the Currency.

The former CEO, who presided over the financial institution whereas it opened tens of millions of probably faux accounts, was additionally ordered to pay a $17.5 million nice for his function within the scandal.

John Stumpf, who was booted out as CEO in October 2016, agreed to the life ban from banking and to pay $17.5 million nice in a federal case introduced by the Office of the Comptroller of the Currency.

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He had initially defended himself earlier than a Congressional committee, telling the panel in September 2016 that “there was no orchestrated effort or scheme” to “provide products and services to customers they did not want or need.”

He nonetheless, apologized for the financial institution’s opening of more than 2 million accounts without customers’ permission

“I am deeply sorry that we failed to fulfill our responsibility to our customers, to our team members, and to the American public,” Stumpf informed Congressional committee. “I have been with Wells Fargo through many challenges — none that pains me more than the one we will discuss this morning.”

The OCC additionally introduced prices towards 5 different former senior executives of Wells Fargo and introduced settlements with two others in a sweeping case overlaying alleged misconduct from the early 2000s by way of October 2016.

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The two different former executives of the San Francisco financial institution who have been charged additionally accepted the decision. Hope Hardison, Wells Fargo’s former chief administrative officer and director of company human sources, agreed to pay a nice of $2.25 million and a private stop and desist order that requires her to chorus from sure conduct sooner or later.

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The financial institution’s former Chief Risk Officer Michael Loughlin will pay a nice of $1.25 million and a private stop and desist order.

Wells Fargo is the second-largest financial institution working within the Valley, with native deposits of $21.35 billion, in accordance to Business Journal analysis.