Compliance
Compliance Corner: Wells Fargo

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A US regulator warns that Wells Fargo has a big
backlog of employee human-resources complaints and poor controls
on pay, adding to the list of challenges for the bank’s new CEO,
the Wall Street Journal reported.
The California-based bank has been working to rebuild its
reputation under new CEO Charles Scharf – hired in October –
following a 2016 fake-account scandal. The saga led to
resignations of top executives and a shakeup in its
leadership.
The WSJ said the human resources complaints came in a
July letter from the Office of the Comptroller of the Currency.
The newspaper cited unnamed sources.
Challenges include thousands of employee complaints, an
inadequate policy for clawing back compensation from executives
and controls for administering pay that are not tight enough to
ward off potential misconduct.
The report added that Wells Fargo declined to comment on specific
details, but said it was making progress on its regulatory
duties, and said more work needed to be done.
In September 2016 it was revealed that some Wells Fargo staff had
opened accounts without clients’ consent, shining a light on an
aggressive sales culture.