Wells Fargo unable to pay severance to laid-off staff due to scandal
More than 400, from rank-and-file branch workers to corporate executives, are affected
New York
FOR more than 400 employees recently laid off by Wells Fargo, the aftermath of the bank's scandal over sham accounts has had an unexpected consequence: the bank is prohibited from paying the severance it owes them.
In mid-November, Wells Fargo's federal regulator, the Office of the Comptroller of the Currency, imposed additional restrictions on the troubled bank. The rules, part of which are intended to curb golden parachute packages, limit what payments Wells Fargo is permitted to make to terminated employees without explicit regulatory approval.
Routine severance pay is sometimes exempted from such restrictions, but the federal rules for golden para…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Abu Dhabi returns to debt market with new US dollar bond
Ping An profit falls as market declines hurt investment returns
BOJ will hike rates if trend inflation accelerates, says Ueda
Binance’s rivals muscle in on Bitcoin trading around the world
Citi picks Amit Dhawan to head Singapore commercial bank operations
China finance ministry echoes Xi’s call for bond trading at PBOC