Wells Fargo Gets Tough New Limits as Regulator Amps Up Sanctions - Bloomberg
I would not be surprised if this were somehow rolled back or changed early next year in the new Trump regime.
While Wells Fargo is subject to the terms of its settlement, it will face hurdles to making major purchases, such as buying large loan portfolios or other companies, a statement issued Friday by the Office of the Comptroller of the Currency shows. The move, which revokes common protections granted to banks in settlements, limits Wells Fargo’s ability to make golden-parachute payments to departing employees and requires regulator approval before senior executives are hired.
Wells Fargo agreed to pay the OCC and other government agencies a total of $185 million in September, settling a case in which the bank was accused of setting up as many as 2.1 million accounts that weren’t approved by customers. The OCC has torn up part of that agreement and imposed heavier restrictions that will be in place until the bank satisfies all of the demands in the extensive order, including reimbursing customers and fixing the internal problems that contributed to the wrongdoing.
Bryan Hubbard, an OCC spokesman, said he couldn’t comment further on what triggered the agency’s latest action. It’s unclear how long the company will be subjected to the unexpected new limits, because major enforcement orders often take many months or even years to satisfy.
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