![]() Your CNN account Log in to your CNN account ![]() CNN’s Matt Egan contributed to this article. In 2018 the Fed imposed a cap on Wells Fargo’s assets - essentially barring it from increasing its balance sheet until it addresses the compliance failures that led to the scandals. Wells Fargo has struggled to get its house in order since the fake account scandal. The last high-level executive to face prison time for financial crimes was former Enron CEO Jeff Skilling, who served 12 years in prison following the energy giant’s collapse in 2001. Only one Wall Street player served time for activities that led to the 2008 financial crisis. Prison sentences for such high-level executives are rare. She received a $125 million retirement package when she left Wells Fargo, though the bank has clawed back about $67 million of that. Tolstedt, the only Wells Fargo executive to face criminal charges in the scheme, paid $17 million to settle a civil case with the the OCC, and $3 million to settle with the SEC. Stumpf was banned from the banking industry and paid a $17.5 million fine as part of a settlement with the Office of the Comptroller of the Currency. Tolstedt signed off on the accuracy of Wells Fargo’s public disclosures “when she knew or was reckless in not knowing” that statements about the bank’s cross-sell metric were “materially false and misleading,” the Securities and Exchange Commission said when it charged Tolstedt and Stumpf in 2020. Regulators said Tolstedt and the bank’s former CEO, John Stumpf, bragged to investors about the scale of the community bank’s open accounts, despite the fact that millions of accounts were fabricated by employees trying to meet unrealistic sales goals set by management. Photographer: Peter Foley/Bloomberg via Getty Images Peter Foley/Bloomberg/Getty Images Wells Fargo is scheduled to release earnings figures on July 14. bank branch in New York, U.S., on Thursday, July 9, 2020. ![]() A pedestrian wearing a protective mask walks past a Wells Fargo & Co.
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