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Wells Fargo Scandal Offers a Chance to Punish Big Bank Executives | Tony Seruga
Sep
18

Wells Fargo Scandal Offers a Chance to Punish Big Bank Executives

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The Wells Fargo scandal puts size to a fresh regulatory test. Despite a settlement, the authorities aren’t finished with the bank’s fake-accounts scandal. Top executives at small lenders have been punished harshly in the past for misdeeds. If Wells Fargo executives escape any such fate, it could escalate tension over the accountability divide.

The bank, with headquarters in San Francisco and a $1.9 trillion balance sheet, is paying a $185 million penalty and has fired about 5,300 employees who were accused of opening more than two million fraudulent deposit and credit card accounts. Federal prosecutors have initiated an inquiry, and Wells Fargo’s chief executive, John Stumpf, has been summoned to testify before a Senate committee next week. Agencies including the Office of the Comptroller of the Currency, however, have yet to name any names…

Wells Fargo Scandal Offers a Chance to Punish Big Bank Executives

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