By Ryan Tracy and Emily Glazer
The Federal Reserve on Friday ordered Wells Fargo & Co. to replace four of its board members and face restrictions on its asset growth.
The Fed's order limits growth in the firm's total consolidated assets beyond levels reported at the end of 2017, unless it receives prior approval from the regulator.
The bank will also replace three current board members by April and a fourth by the end of 2018, the Fed said in a press release.
"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," Fed Chairwoman Janet Yellen said in a statement about what will likely be her last major act in charge of the Fed's governing board. "The enforcement action we are taking today will ensure that Wells Fargo will not expand until it is able to do so safely and with the protections needed to manage all of its risks and protect its customers."
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