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Wells Fargo has announced the suspension of two senior executives as part of an ongoing regulatory review of its sales practices, the latest blow to a bank that has been suffering scandals for years.
The bank announced on Wednesday that it had put its chief auditor, David Julian, and his administrative manager, Hope A. Hardison, on immediate leave, and removed them from the executive committee of the company's senior executives.
Hardison had been one of those responsible for a major clean-up of the besieged bank. Federal and state regulators have repeatedly punished him for his deceptive marketing practices. Last month, American Banker, a newspaper specializing in commerce, ranked it 10th among women to watch in the banking sector.
Wells Fargo suspended Ms. Hardison and Mr. Julian at the request of the regulatory authorities of the Federal Office of the Comptroller of Money, according to a person informed of the decision but not authorized to discuss it in public.
"These holidays are linked to ongoing reviews previously disclosed by regulators and related to historical sales practices in retail banking," the bank said in a statement released on Wednesday. Wells Fargo stated that these changes had nothing to do with the financial results or the internal financial controls reported by the bank.
Ms. Hardison did not respond to requests for comment. Mr. Julian declined to comment, said his son.
In February, the US Federal Reserve imposed restrictions that prevent Wells Fargo from growing and opened the bank to a broad review aimed at putting an end to his fault. The Office of the Comptroller also looks at the bank's operations and requests changes that regulators believe will eliminate the risk of further abuse by customers.
Wells Fargo has already had an excellent reputation in the banking sector. But it was shaken by years of problems. Among the problems encountered, many employees have opened a ghost bank account under the name of involuntary customers, who improperly entered them for car insurance and changed their mortgage without authorization.
When the Fed announced a more in-depth review, Wells Fargo executives said they would expect it to last until September. Timothy J. Sloan, chief executive of the bank, said this month that the regulatory measures would last longer than originally planned.
"We are still planning to operate with a cap on assets during the first part of next year," Sloan said during a conference call with banking analysts.
"Over the past two years, we have become more customer focused, we have made significant changes to management and the board of directors, we have strengthened risk management and controls, simplified the organization and invested in the members of our team, "said Sloan. "We remain committed to making things better for customers and building a better Wells Fargo."
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