The office of the Comptroller of the Currency in the US has imposed new restrictions on Wells Fargo because the recent accounts scam. The new curbs will mean the bank will no longer have “expedited treatment” when it wants to open branches or make other important business decisions. The bank would be required to obtain the OCC’s approval before it changes senior managers or directors and makes ‘golden parachute’ payments to executives, which will mean it will be difficult for the bank to attract talent. The bank was involved in an accounts scam where it was found that several thousands of its staff had opened fake bank accounts for customers without their consent. Earlier, the bank had concluded a $185 million settlement with regulators, under which the OCC had granted the bank relief from restrictions it can impose when it takes enforcement actions. The new decision by the OCC revokes the waivers that it had previously granted.
