The Federal Reserve cracks down on Wells Fargo over scandal involving sham accounts [View all]
Source: Washington Post
The Federal Reserve levied an unprecedented penalty against Wells Fargo on Friday, ordering the mega bank to oust four of its board members and not grow any bigger until it corrects governance problems that led it to widespread consumer abuses.
“We cannot tolerate pervasive and persistent misconduct at any bank and the consumers harmed by Wells Fargo expect that robust and comprehensive reforms will be put in place to make certain that the abuses do not occur again,” Chair Janet L. Yellen said in a statement.
Wells Fargo said that as part of its consent decree with the Federal Reserve it would submit a plan detailing how it would enhance its governance oversight within 60 days. “We take this order seriously and are focused on addressing all of the Federal Reserve’s concerns,” Timothy J. Sloan, Wells Fargo’s president and chief executive officer, said in a statement.
The bank’s problems stem from its admission in 2016 that it had opened millions of sham accounts that customers didn’t ask for. Some customers were wrongly charged with overdraft and other fees that harmed their credit scores. The bank faced an immediate backlash on Capitol Hill, forcing longtime chief executive John Stumpf to resign and some senior executives to give up millions of dollars in bonuses.
Read more: https://www.washingtonpost.com/news/business/wp/2018/02/02/federal-reserve-orders-wells-fargo-to-halt-growth-oust-four-board-members-after/?utm_term=.d783c0d0e278&wpisrc=al_news__alert-economy--alert-national&wpmk=1
= new reply since forum marked as read