Federal regulator slaps further restraints on Wells Fargo
US bank Wells Fargo has been imposed with tighter regulations by a federal body in the country after admitting to fraudulently setting up accounts and credit cards in their customers' names.
Wells Fargo & Co.
$74.09
11:09 18/11/24
The California-based bank has been flagged by the Office of the Comptroller of the Currency, which oversees the actions of large national banks.
The bank will now require approval from the regulatory body in order to make a large number of decisions with regards to its business.
John Stumpf, former CEO of Wells, resigned earlier this year following the unauthorised accounts scandal, after being grilled at several congressional and senate committees for the bank's actions.
There was little by way of explanation offered by the OCC, who made alterations to an agreement which was signed by both parties after Wells agreed to pay $185m in fines to settle the case.
Wells Fargo released a statement in response to the changes, saying it would comply with any new restrictions.
"This will not inhibit our ability to execute our strategy, rebuild trust and serve our customers, and continue to operate the company for the benefit of all our stakeholders," the statement read.
New account openings dropped 44% for the bank in October compared with the same period last year, as well as a 50% fall in credit card applications, as customers turn their backs on Wells after the malpractice.