Reuters, January 24, 2020: U.S. bank regulator sharpens teeth on Wells Fargo, surprising critics
Consumer groups had worried that the Trump Administration’s pick to lead the Office of the Comptroller of the Currency (OCC), Joseph Otting, would do little to change its reputation for leniency. A former chief executive of California’s OneWest Bank, Otting as comptroller has referred to lenders as his “customers” and pursued rule changes pushed for by bank lobbyists.
But when it comes to Wells Fargo’s sales practices, Otting has consistently been a harsh critic, driving penalties against the bank which have broken new ground. One person with knowledge of the matter said Wells Fargo’s failure to swiftly fix systemic misconduct has angered Otting, precisely because he spent decades as a banker and felt he was held to high standards.
The OCC was lambasted for missing signs of the brewing financial crisis and was again criticized for failing to catch Wells Fargo’s problems in the first place. An internal OCC review found its examiners failed to follow-up on red flags, including hundreds of whistleblower complaints.
While Otting is personally aggrieved by the bank’s lapses, he has also been under pressure from lawmakers to take a tough line.
