WASHINGTON The former head of Wells Fargo & Co's retail bank agreed to pay a $3 million penalty to settle the U.S. Securities and Exchange Commission's fraud charges for misleading investors about sales practices to inflate a performance metric, the SEC said on Tuesday.

Carrie Tolstedt was charged in 2020 for her role in allegedly misleading investors about the success of Wells Fargo's core business.

(Reporting by Kanishka Singh in Washington; Editing by Leslie Adler)