US banking regulators on Thursday fined ex-Wells Fargo Chief Executive John Stumpf $17.5 million over the bank's 2016 fake accounts scandal, blaming Stumpf and other top former executives for the debacle. The Office of Comptroller of the Currency settled with Stumpf and two other former executives, while announcing charges against five other former officials whose poor work performance allegedly "contributed to the bank's systemic problems," the agency said.
As part of the settlement, Stumpf also received a ban from the banking industry. The OCC is seeking a $25 million penalty from former head of community banking Carrie Tolstedt and a $5 million penalty from Claudia Russ Anderson, a former risk officer who allegedly made false and misleading statements and "actively obstructed the OCC's examinations of the bank's sales practices," the OCC said.
This group of officials can challenge the allegations through an administrative law process, the OCC said. The penalties are the latest fallout from since the scandal came to light in 2016.
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