Regulators aim at Wells Fargo Technology Oversight
Wells Fargo
& Cos's wide promising woes has expanded into another part of its business: its technology operations.
The Currency Controller Office in recent weeks, Wells Fargo sent a regulatory warning that often precedes enforcement, according to people familiar with the case.
The bank has also failed or is not expected to meet deadlines of about two dozen technology-based OCC regulatory warnings known as issues that require attention to have been issued since 201[ads1]4 or earlier, the people said.
The authorities have identified issues across Wells Colorado's technology operations, including software failures, cyber security issues and risk management disorders, according to an International Bank Document from June focused on corporate technology reviewed by The Wall Street Journal.
"At Wells Fargo, we are in constant dialogue with our regulators and are working hard to cope with any feedback they provide," said Wells Fargo spokeswoman Richele Messick. She said that the bank did not comment on anything related to confidential regulatory conditions.
Ms. Messick added that the security of the bank's customer accounts and information is the highest priority.
An OCC spokesman refused to comment.
The regulatory focus on Wells Fargo's technology management is the last problem for the bank since the sales scandal broke out over two years ago. Federal and state investigations have cut into all banks in large business units, and regulators have pushed it privately to add more outsiders in their upper ranks.
The bank has taken steps to address regulatory concerns.
At the end of October, Wells Fargo said that it would mention a new senior technology executive who would report to CEO Timothy Sloan and join the bank's board of top executives. The CEO will monitor the bank's corporate information technology and company information security team.
"This new combined team will allow us to further accelerate our efforts to simplify Wells Faros technological environment, strengthen our security features, reduce risk and improve our ability to fulfill our business commitments and regulatory obligations," said Mr. Sloan in a statement at that time.
Wells Fargo planned to report to chief financial officer John Shrewsberry first, but the bank changed the reporting lines after OCC claimed objections, according to people familiar with the case.
November 1, Wells Fargo said it had brought enter one earlier
JPMorgan Chase
& Co. executive to take the role of chief operating officer for his corporate information technology team, monitoring enterprise technology strategy, process and operations.
Write to Emily Glazer at emily.glazer@wsj.com
