The WSJ, Bloomberg and the HousingWire publications are reporting that the OCC has overnight slapped a series of new sanctions upon Wells Fargo Corporation (WFC), the large BHC which was caught out in the unbelievable recent fake account scandal resulting in $185 million of fines. It is now reported that the OCC has portioned yet further sanctions upon WFC last night, requiring it to first seek permission in order to change it board of directors or senior executive officers, and dis-allowing it to agree to so-called golden parachutes payments to departing executives or board members. The OCC memo, dated November 18th 2016, says at its core "... the OCC informed the Bank (Wells Fargo Bank NA) that it has revoked provisions of the enforcement documents that provided relief from specific requirements and limitations regarding... change of directors, senior executives and golden parachute payments".
I recall the dismay relating to ex CEO Stumpf's compensation package came up during congressional grilling, as well as the well publicised parting compensation payment of $124mio for a senior executive who was in charge of the unit with the breaches during the firestorm (note, some of the payments otherwise due to the departed CEO and senior executive was subsequently un-allowed). Could it be that the regulator got word of further arrangements in the mix? Or did it want to give the new team at WFC a clear message and boundary regarding further executive exodus and departing C-suite players? Cultural change will be the watchword in banking for years to come, it would appear...
Comments
Post a Comment