THE WALL STREET JOURNAL -
The Office of the Comptroller of the Currency sent formal letters to banks earlier this month
The Office of the Comptroller of the Currency earlier this month sent formal letters to large and regional banks seeking information about sales practices and incentive-compensation structures following the Wells Fargo & Co. scandal, people familiar with the requests said.
The OCC sent letters to banks under its supervision including J.P. Morgan Chase & Co., Bank of America Corp. and Citigroup Inc., these people said. The requests followed earlier, informal questions about those practices.
“This month federal regulators fined Wells Fargo $185 million for opening checking and credit card accounts on behalf of customers who had no idea that was happening. The bank has promised to try to make restitution. But that's a lot harder than it sounds. A big question is how to compensate people whose credit scores were hurt by what the bank did. Regulators say that over a five-year period some 2 million credit card and deposit accounts were opened that may not have been authorized by the bank's customers. And though no one knows for sure, it's almost certain that the accounts had a big impact on customers' credit scores.”
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Technology has once again put the banking sector into a state of flux. Since the release of the world's first ATM in 1969, banks have been working to automate services once handled by tellers in branches, to make them more widely available.
The birth of the internet saw the finance industry recalibrate itself again, moving to replicate its traditional banking operations on their respective websites. Banks worked hard on developing mobile apps and streamlining their online presence.
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