A consent order against Well Fargo that had been in place since late-2016 was terminated by the Office of the Comptroller of the Currency, as the bank has taken sufficient steps to address its culture, the administration said. The order required changes to how Wells Fargo sells financial products, as well as additional protections for consumers and whistleblowers.
In 2016, multiple newspaper and government investigations pointed to a toxic culture where employees were urged to sell unnecessary products, and employees who worked at stores were pressured to open unauthorized accounts. A disproportionate share of the customers involved were non-English speaking.
Wells Fargo has since made significant changes to management and its board of directors, and it has paid more than $1 billion in fines and penalties. In light of these changes, the Comptroller of the Currency said its “compliance with laws and regulations does not require the continued existence of the order.”
Eight other consent orders, including a Federal Reserve consent order, are still in place, along with a Fed requirement that the bank grow no bigger until the sales culture is addressed.
