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Wells Fargo unable to pay severance to laid-off employees


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Wells Fargo unable to pay severance to laid-off employees

Rules imposed by the Office of the Comptroller of the Currency to exert more control at Wells Fargo & Co. are keeping the bank from paying severance to laid-off employees who were not part of the unauthorized-accounts scandal, The New York Times reported Jan. 31.

In November 2016, the OCC set restrictions on the bank, including those limiting golden parachute payments to departing executives. However, the rules are complex and also affect the severance pay for Wells Fargo's former employees at all levels, the report noted.

About 400 affected former employees, who were not accused of wrongdoing, are those whose jobs were cut just prior to the additional restrictions, according to The New York Times. Wells Fargo has told these former employees that their severance payments are indefinitely delayed.

Wells Fargo has asked for OCC approval to make these severance payments, which total millions of dollars, but has yet to receive it, bank spokeswoman Diana Rodriguez told the publication.