Wells Fargo Gets Tough New Limits as Regulator Amps Up Sanctions

Wells Fargo & Co. is suddenly under an even tighter vise as one of its chief regulators ripped up parts of a recent settlement over bogus accounts, potentially hamstringing new business moves that need government approval.

While Wells Fargo is subject to the terms of its settlement, it will face hurdles to making major purchases, such as buying large loan portfolios or other companies, a statement issued Friday by the Office of the Comptroller of the Currency shows. The move, which revokes common protections granted to banks in settlements, limits Wells Fargo’s ability to make golden-parachute payments to departing employees and requires regulator approval before senior executives are hired.