& Co.’s wide-ranging regulatory woes have extended to another part of its business: its technology operations.
The Office of the Comptroller of the Currency in recent weeks sent Wells Fargo a regulatory warning that often precedes an enforcement action, according to people familiar with the matter.
The bank also has failed or isn’t expected to meet deadlines on around two dozen technology-focused OCC regulatory warnings known as Matters Requiring Attention that have been issued since 2014 or earlier, the people said.
Regulators have identified problems across Wells Fargo’s technology operations, including software vulnerabilities, cybersecurity concerns and risk-management inconsistencies, according to a June internal bank document focused on enterprise technology reviewed by The Wall Street Journal.
"At Wells Fargo we are in constant dialogue with our regulators, and are working diligently to address any feedback they provide,” said Wells Fargo spokeswoman Richele Messick. She said the bank doesn’t comment on anything related to confidential regulatory matters.
Ms. Messick added that the security of the bank’s customer accounts and information is its highest priority.
An OCC spokesman declined to comment.
The regulatory attention on Wells Fargo’s technology oversight is the latest problem for the bank since its sales-practices scandal erupted more than two years ago. Federal and state investigations have cropped up in every one of the banks major business units, and regulators have privately pushed it to add more outsiders to its upper ranks.
The bank has taken steps to address regulators’ concerns.
In late October, Wells Fargo said it would name a new senior technology executive who would report to Chief Executive Timothy Sloan and join the bank’s operating committee of top executives. The executive will oversee the bank’s enterprise information technology and enterprise information security teams.
“This new combined team will allow us to further accelerate our efforts to simplify Wells Fargo’s technology environment, strengthen our security capabilities, mitigate risk, and enhance our ability to meet our business and regulatory commitments,” Mr. Sloan said in a statement at the time.
Wells Fargo initially planned for the technology executive to report to Chief Financial Officer John Shrewsberry, but the bank changed the reporting lines after the OCC raised objections, according to people familiar with the matter.
On Nov. 1, Wells Fargo said it had brought in a former
& Co. executive to take the role of chief operating officer for its enterprise information technology team, overseeing enterprise technology strategy, process and operations.
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