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Loosening leash on Wells Fargo

Monday, October 30, 2017 - 01:32

U.S. Comptroller of the Currency wants to make it easier for Wells Fargo to pay employees when they leave, loosening a restriction in place since a phony accounts scandal. Roselle Chen reports.

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The U.S. Comptroller of the Currency wants to loosen restrictions on Wells Fargo. The restrictions were put in place last year, after Wells Fargo admitted its sales staff opened over two million accounts without customers' consent. That number has climbed to 3.5 million since then. Last September, Wells Fargo reached a $190 million settlement. It also agreed to vetting for incoming executives. And all severance payouts had to be cleared by the Office of the Comptroller of the Currency and a sister agency, the Federal Deposit Insurance Corporation. Now the comptroller wants to speed up the severance pay reviews and allow waiving checks on incoming executives. The changes would affect the entire banking industry. Reuters correspondent Patrick Rucker has the scoop. (SOUNDBITE) PATRICK RUCKER, CORRESPONDENT, REUTERS (ENGLISH) SAYING: "Well, where were we a year ago? A year ago, before the presidential election, the Wells-Fargo scandal broke. It was considered outrageous. We had lawmakers that were holding hearings. The bank was, its reputation been badly damaged. Now, a year has passed, the scandal subsided a bit, and President Trump's made it clear he wants to make things easier on Wall Street. He wants to cut red tape. He wants to loosen regulation. And one of the big moves in that direction has been on this case to allow Wells Fargo executives to get their payouts a little easier than they would have before President Trump was elected." Wells Fargo declined to comment. The bank faces fresh scrutiny for wrongly charging customers for car insurance and mortgages.

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Loosening leash on Wells Fargo

Monday, October 30, 2017 - 01:32