Wells Fargo will need the US government's blessing before it can pick its next CEO.
The head of the Office of the Comptroller of the Currency told Congress on Wednesday that the agency intends to review Wells Fargo's next chief executive. Thanks to a settlement that Wells Fargo reached with the banking regulator, the OCC gets to be part of that decision.
Wells Fargo is trying to fill the spot left open when former CEO Tim Sloan stepped down suddenly in March. C. Allen Parker, the bank's general counsel, took over on an interim basis. The bank has to provide the regulator with 90 days notice once it has chosen a permanent successor.
Joseph Otting, head of the OCC, told Congress he was disappointed by Wells' efforts to address a series of scandals, according to reports.
The bank's settlement agreement with the federal government dates back to 2016, when Wells Fargo became embroiled in a scandal over millions of fake bank accounts. The bank also admitted to firing 5,300 workers in connection with the fake accounts.
In November 2016, federal regulators put several restrictions on Wells Fargo, including the provision that allows the government to reject the hiring of senior executives.
Controversy has continued to plague Wells Fargo. In April 2018, the bank was fined $1 billion by the Consumer Financial Protection Bureau and the OCC over forcing customers to buy car insurance and overcharging on mortgage fees.