Wells Fargo Confirms Termination of 2018 OCC Compliance Consent Order
Wells Fargo (NYSE: WFC) announced the termination of its 2018 Office of the Comptroller of the Currency (OCC) consent order related to the company's compliance risk management program. This marks the tenth consent order closed by Wells Fargo's regulators since 2019.
CEO Charlie Scharf highlighted this as a significant achievement, noting that three other consent orders were terminated in the last three weeks, including the OCC's 2016 sales practices consent order. The CEO emphasized that Wells Fargo has undergone substantial transformation under the new management team and remains committed to completing work required under remaining consent orders while building a respected financial institution.
Wells Fargo (NYSE: WFC) ha annunciato la cessazione del suo ordine di consenso dell'Ufficio del Comptroller of the Currency (OCC) del 2018 relativo al programma di gestione del rischio di conformità dell'azienda. Questo segna il decimo ordine di consenso chiuso dai regolatori di Wells Fargo dal 2019.
Il CEO Charlie Scharf ha evidenziato questo come un risultato significativo, sottolineando che altri tre ordini di consenso sono stati chiusi nelle ultime tre settimane, incluso l'ordine di consenso sulle pratiche di vendita del 2016 dell'OCC. Il CEO ha enfatizzato che Wells Fargo ha subito una trasformazione sostanziale sotto il nuovo team di gestione e rimane impegnata a completare il lavoro richiesto dagli ordini di consenso rimanenti, mentre costruisce un'istituzione finanziaria rispettata.
Wells Fargo (NYSE: WFC) anunció la terminación de su orden de consentimiento de 2018 de la Oficina del Contralor de la Moneda (OCC) relacionado con el programa de gestión de riesgos de cumplimiento de la empresa. Esto marca el décimo orden de consentimiento cerrado por los reguladores de Wells Fargo desde 2019.
El CEO Charlie Scharf destacó esto como un logro significativo, señalando que otros tres órdenes de consentimiento se han terminado en las últimas tres semanas, incluido el orden de consentimiento de prácticas de ventas de 2016 de la OCC. El CEO enfatizó que Wells Fargo ha experimentado una transformación sustancial bajo el nuevo equipo de gestión y sigue comprometida a completar el trabajo requerido bajo los órdenes de consentimiento restantes mientras construye una institución financiera respetada.
웰스 파고 (NYSE: WFC)는 2018년 통화감독청(OCC)의 동의 명령 종료를 발표했습니다. 이는 2019년 이후 웰스 파고의 규제 기관이 닫은 열 번째 동의 명령입니다.
CEO 찰리 샤프는 이를 중요한 성과로 강조하며, 지난 3주 동안 OCC의 2016년 판매 관행 동의 명령을 포함하여 세 개의 다른 동의 명령이 종료되었다고 언급했습니다. CEO는 웰스 파고가 새로운 경영진 하에 상당한 변화를 겪었으며, 남아 있는 동의 명령에 따라 요구되는 작업을 완료하는 데 전념하고 있으며, 존경받는 금융 기관을 구축하는 데 헌신하고 있다고 강조했습니다.
Wells Fargo (NYSE: WFC) a annoncé la résiliation de son ordre de consentement de 2018 lié au programme de gestion des risques de conformité de l'entreprise, émis par le Bureau du Contrôleur de la monnaie (OCC). Cela marque le dixième ordre de consentement fermé par les régulateurs de Wells Fargo depuis 2019.
Le PDG Charlie Scharf a souligné cela comme une réalisation significative, notant que trois autres ordres de consentement ont été résiliés au cours des trois dernières semaines, y compris l'ordre de consentement de l'OCC sur les pratiques de vente de 2016. Le PDG a insisté sur le fait que Wells Fargo a subi une transformation substantielle sous la nouvelle équipe de direction et reste déterminée à achever le travail requis dans le cadre des ordres de consentement restants tout en construisant une institution financière respectée.
Wells Fargo (NYSE: WFC) gab die Beendigung seiner Zustimmungserklärung von 2018 durch das Office of the Comptroller of the Currency (OCC) bekannt, die das Compliance-Risikomanagementprogramm des Unternehmens betrifft. Dies markiert die zehnte abgeschlossene Zustimmungserklärung der Aufsichtsbehörden von Wells Fargo seit 2019.
CEO Charlie Scharf hob dies als einen bedeutenden Erfolg hervor und merkte an, dass in den letzten drei Wochen drei weitere Zustimmungserklärungen beendet wurden, darunter die Zustimmungserklärung zu den Verkaufspraktiken von 2016 der OCC. Der CEO betonte, dass Wells Fargo unter dem neuen Management-Team eine wesentliche Transformation durchlaufen hat und sich verpflichtet fühlt, die erforderlichen Arbeiten unter den verbleibenden Zustimmungserklärungen abzuschließen, während das Unternehmen eine angesehene Finanzinstitution aufbaut.
- Termination of 2018 OCC compliance consent order indicates improved regulatory compliance
- Successfully closed 10 consent orders since 2019
- Terminated 3 additional consent orders in past three weeks
- Removal of 2016 sales practices consent order
- Company still has remaining consent orders to address
Insights
The termination of Wells Fargo's 2018 OCC compliance consent order represents a transformative moment in the bank's regulatory recovery journey. With ten consent orders now closed since 2019, including four in just the past month, Wells Fargo is systematically dismantling the regulatory framework that has constrained its operations and imposed significant compliance costs.
The removal of this compliance risk management consent order carries several important implications:
- Operational Efficiency: The termination likely reduces compliance-related expenses, which have historically cost the bank hundreds of millions annually in additional oversight, technology, and personnel costs.
- Strategic Flexibility: With fewer regulatory constraints, Wells Fargo gains increased autonomy in operational decision-making and potential business expansion opportunities.
- Competitive Position: The bank can now operate more efficiently against peers like JPMorgan Chase and Bank of America, who haven't faced similar regulatory restrictions.
- Capital Deployment: Reduced regulatory oversight may provide more flexibility in capital allocation decisions, potentially benefiting shareholders through increased dividends or share buybacks.
The timing and sequence of consent order terminations suggest a methodical approach to regulatory rehabilitation. The recent acceleration in consent order terminations - four in three weeks - indicates that Wells Fargo's compliance transformation has reached a critical mass of effectiveness. This systematic reduction in regulatory oversight signals a fundamental shift in the bank's risk management and compliance culture.
Looking ahead, Wells Fargo still has remaining consent orders to address, but the momentum in resolving these regulatory issues suggests a clear path forward. The bank's transformation under CEO Charlie Scharf's leadership has established more robust compliance frameworks and risk management practices, potentially reducing the likelihood of future regulatory interventions.
Facade of a Wells Fargo bank branch in
Charlie Scharf, Wells Fargo’s CEO, said of today’s news:
“We are pleased that the OCC has validated the work required in the 2018 compliance consent order and has terminated the enforcement action. This development, along with the termination of three other consent orders in the last three weeks and the termination by the OCC of the 2016 sales practices consent order last year, is a huge accomplishment for the many thousands of people at Wells Fargo who have worked tirelessly to transform the company. We are a different company today than when the new management team arrived. We remain focused and confident in our ability to complete the work required in our remaining consent orders, while building one of the most respected financial institutions in the country.”
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately
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This news release contains forward-looking statements about our future financial performance and business. Because forward-looking statements are based on our current expectations and assumptions regarding the future, they are subject to inherent risks and uncertainties. Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.
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Media
Beth Richek, 980-308-1568
beth.richek@wellsfargo.com
Investor Relations
John
john.m.campbell@wellsfargo.com
Source: Wells Fargo & Company
FAQ
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