The latest scandal involving Wells Fargo shows that bank behavior hasn't "changed enough" since the financial crisis, said Federal Reserve Governor Daniel Tarullo on Friday. While declining to talk about the specifics of the Wells Fargo case, Tarullo said too many banks still only respond to particular ethical lapses instead of putting in place comprehensive compliance programs. In an interview on CNBC, the Fed governor said he wanted regulators to hold individuals at bank responsible for inappropriate behavior rather than simply have firms pay fines. Even criminal prosecution of bank officers should be pursued "in order to make the point that there is individual culpability," Tarullo said. On Thursday, Wells Fargo was hit with a $185 million fine from the Consumer Financial Protection Bureau after an investigation by federal and local officials found bank employees signed up existing bank customers to credit-card and other accounts without their knowledge in order to meet internal sales targets.
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