OCC issues enforcement action against Wells Fargo

OCC orders Wells Fargo to improve risk management and governance

The Office of the Comptroller of the Currency (OCC) has issued an enforcement action against Wells Fargo Bank, N.A. (Wells Fargo) for "unsafe or unsound banking practices" related to its risk management and governance. The OCC found that Wells Fargo failed to "establish and maintain an effective risk management system" and "failed to effectively oversee its operations."

OCC's findings

The OCC's investigation found that Wells Fargo's risk management system was inadequate and that the bank failed to identify and manage risks effectively.

The OCC also found that Wells Fargo's governance structure was ineffective and that the bank's board of directors and senior management failed to provide adequate oversight of the bank's operations.

This is the latest in a series of enforcement actions against Wells Fargo by the OCC. The OCC previously issued a consent order against Wells Fargo in 2018 for violations of the Bank Secrecy Act and other banking laws. Wells Fargo has agreed to the terms of this enforcement action and will be required to pay a civil money penalty of $50 million. The bank will also be required to take a number of steps to improve its risk management and governance, including hiring an independent consultant to review its operations.

OCC statement

The OCC stated that "this enforcement action is intended to address the deficiencies in Wells Fargo's risk management and governance systems that have led to repeated violations of law and regulation." The OCC also stated that "Wells Fargo must take immediate and comprehensive action to address these deficiencies and to ensure that it operates in a safe and sound manner."

Wells Fargo's response

Wells Fargo has issued a statement saying that it "takes the OCC's findings seriously" and that it is "committed to addressing the issues raised in the enforcement action." The bank has also stated that it will "continue to work with the OCC to improve its risk management and governance systems."