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Former Wells Fargo CEO fined, banned from industry for life over fake accounts scandal

Austin Weinstein, The Charlotte Observer on

Published in Business News

In September 2016, the bank was fined $185 million for opening the sham accounts.

The Federal Reserve has capped the bank's growth since February 2018. Even "Saturday Night Live" made fun of the scandal.

Scharf, an acolyte of JPMorgan Chase CEO Jamie Dimon, got the bank's top job late last year with a mandate to fix the mess, get regulators off the bank's back, and get the bank growing again.

The scandal makes that harder: it's spent billions on legal costs, including a $1.5 billion charge last quarter that hurt the firm's earnings.

The legal woes don't appear to end with the OCC's action Thursday.

 

Federal prosecutors, including those in North Carolina, have opened a criminal investigation into multiple former Wells Fargo executives, American Banker reported this month, and indictments could come as soon as by the end of January.

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