NY Tells Banks To Keep Controls On Employee Incentives
ALBANY, N.Y. (AP) -€” New York banking regulators are cracking down on compensation practices like those that allegedly pushed Wells Fargo employees to boost sales figures by secretly opening new customer accounts.
The Department of Financial Services says incentive compensation may not be tied to performance measures without effective oversight.
The directives apply to 121 state-chartered commercial banks, savings banks and bank holding companies. They also apply to 17 credit unions, 88 foreign branches, 14 foreign agencies and 35 representative offices. Their assets exceed $2.5 trillion.
The department says its examiners will look at incentives and misconduct deterrence during regular reviews.
[STORY BY: THE ASSOCIATED PRESS]