NEW YORK, NEW YORK – MAY 17: President and CEO of Wells Fargo Charlie Scharf attends The Way forward for All the pieces offered by the Wall Avenue Journal at Spring Studios on Might 17, 2022 in New York Metropolis. (Photograph by Steven Ferdman/Getty Photos)
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Wells Fargo stated Thursday certainly one of its main regulators has lifted a key penalty tied to its 2016 pretend accounts scandal.
The financial institution stated in a launch that the Workplace of the Comptroller of the Forex terminated a consent order that pressured it to revamp the way it sells its retail services and products.
Shares of the financial institution jumped greater than 5% on the information.
Wells Fargo, one of many nation’s largest retail banks, has retired six consent orders since 2019, the yr that CEO Charlie Scharf took over. Eight extra stay, most notably together with one from the Federal Reserve that caps the financial institution’s asset measurement, in keeping with an individual with data of the matter.
In a memo despatched to staff, Scharf known as the event a “milestone” for the lender. The 2016 pretend accounts scandal and associated consent order ignited a wave of scrutiny on the financial institution that exposed issues associated to the servicing of mortgages, auto loans and different shopper accounts.
The eye tarnished the financial institution’s popularity and compelled the retirement of each ex-CEO John Stumpf in 2016 and successor Tim Sloan in 2019.
“The OCC’s motion is affirmation that we have now successfully put in place new methods, processes, and controls to serve our clients in a different way at present than we did a decade in the past,” Scharf stated. “It’s our duty to make sure we proceed to function with these disciplines.”
— CNBC’s Leslie Picker contributed to this report.
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