During his 2017 “State of the State” address Monday, New York Gov. Andrew Cuomo proposed legislation that would give the New York Department of Financial Services the power to ban individuals from working in the financial services industry for “egregious conduct.”
According to HousingWire staffer Ben Lane, Cuomo cited Wells Fargo and its recent fake account scandal as the kind of action that could get a person banned from working in financial services under the new rule.
“The excesses and systematic abuse at the center of the Wells Fargo scandal is unacceptable and New York, in its role as a regulator, is seeking to take bold steps to crack down on this unacceptable behavior and ensure these bad actors are barred from working in this industry once and for all,” Cuomo said.
Under the proposal, a new section would be added to New York's Financial Services Law, which would “disqualify certain individuals from the banking or insurance industries if, after a hearing, the (NYDFS) Superintendent finds they have done something so severe as to have a direct bearing on their fitness or ability to continue participating in the industry.”