OCC Clamps Down Further on Well Fargo & Company (NYSE:WFC)

OCC Clamps Down Further on Well Fargo & Company (NYSE:WFC)

OCC Clamps Down Further on Well Fargo & Company (NYSE:WFC)


Friday, the Key US bank regulator reversed course and revoked Wells Fargo & Co.’s (NYSE:WFC) right to shield the pay of former executives after a phony-accounts scandal.

The lender also must now seek prior approval before naming new bank leadership, said the Office of the Comptroller of the Currency (OCC), the main regulator for federal banks.

Wells Fargo in September agreed to pay $190-M to settle charges that bank employees opened as many as 2-M accounts without customers’ knowledge.

The OCC exempted Wells Fargo from some controls on “Golden Parachutes” in that settlement. The move Friday evening voids those earlier allowances, the OCC said.

“The OCC informed the Bank today that it has revoked… relief from specific requirements and limitations regarding rules, policies, and procedures for corporate activities,” the agency said in a Friday evening statement.

An OCC official said the move puts Wells Fargo under toughened standards for oversight which the agency had exempted in the original settlement.

John Stumpf, the departed CEO, and Carrie Tolstedt, former head of retail banking, did relinquish about $60-M in stock, in the wake of the scandal according to a review of securities filings.

But the pair also stood to take home more than $350-M n compensation, according to filings.

The move Friday positions the regulator to claw back those payouts, said an official who was not authorized to speak.

Symbol Last Trade Date Change Open High Low Volume
NYSE:WFC 52.31 21 November 2016 -0.51 52.85 52.98 52.02 8,930,309
HeffX-LTN Analysis for WFC: Overall Short Intermediate Long
Very Bullish (0.51) Bullish (0.46) Very Bullish (0.54) Very Bullish (0.53)

Have a happy holiday week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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