Former Wells Fargo chief executive officer (CEO) John Stumpf has agreed to a lifetime ban from the banking industry and a $17.5 million fine.
John Stumpf received the lifetime ban from the banking industry and the $17.5 million fine for his role in leading the bank through its massive fake accounts scandal and other sales practice misconduct.
According to the US Office of the Comptroller of the Currency, it also fined seven other former Wells Fargo executives with about $40 million in connection to what it described as "the bank's systemic sales practices misconduct."
In the civil charges filed by OCC, it stated that the executives "failed to adequately perform their duties and responsibilities, which contributed to the bank's systemic problems with sales practices misconduct from 2002 until October 2016."
In a statement, the OCC said: "The misconduct of these individuals allowed the practices to continue for years, affecting millions of bank customers and thousands of lower level bank employees."
Around $4 billion in fines have already been paid out by Wells Fargo from the wide-ranging sales schemes. The firm admitted that its employees opened millions of fake bank and credit card accounts to meet its unrealistic sales goals.
The bank also admitted that its actions forced borrowers to pay for auto insurance they didn't need, which led to auto borrowers ultimately having their vehicles repossessed. Wells Fargo also admitted to illegally repossessing the vehicles of hundreds of service members.
Wells Fargo's current CEO Charles Scharf said: "The OCC's actions are consistent with my belief that we should hold ourselves and individuals accountable. They also are consistent with our belief that significant parts of the operating model of our Community Bank were flawed."
He added that the company "will not make any remaining compensation payments that may be owed to these individuals while we review the filings."
