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Wells Fargo Faces New Sanctions After Fake-Accounts Scandal

Pedestrians pass a Wells Fargo bank branch in lower Manhattan on April 15, 2016, in New York City. (Credit: Spencer Platt / Getty Images)

A federal regulator has tightened restrictions on Wells Fargo & Co., requiring it to get approval to replace or hire new executives and make other changes, in the latest fallout over the San Francisco bank’s fake-accounts scandal.

Late Friday, the Office of the Comptroller of the Currency, one of the regulators that reached a $185 million settlement with the bank over the creation of unauthorized customer accounts, issued a brief statement saying it was revoking some of the terms of that Sept. 8 deal.

Specifically, the OCC said it was canceling parts that had shielded Wells Fargo from some oversight usually reserved for troubled banks.

The OCC did not issue a statement explaining the cancellation, but Wade Francis, a former OCC bank examiner, said the move amounts to a regulatory vote of no-confidence in the bank’s leadership.

Click here to read the full story on LATimes.com.