Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Warren says Fed must break up 'repeat offender' Wells Fargo

09/14/2021 | 11:49am EDT
FILE PHOTO: A Wells Fargo logo is seen in New York City

WASHINGTON, Sept 14 (Reuters) - U.S. Senator Elizabeth Warren on Tuesday called on the Federal Reserve to break apart Wells Fargo & Co, arguing the latest fine against the bank shows it to be an "irredeemable repeat offender."

In a letter sent to the Fed, Warren urged the central bank to revoke Wells Fargo's status as a financial holding company and order it to sell off its investment banking and nonbanking activities, citing the bank's years-long struggle to address regulatory shortcomings.

"Wells Fargo is simply ungovernable," she said in the letter, the latest in her lengthy campaign against the bank, which has been penalized repeatedly by regulators for a range of issues.

Warren, an unsuccessful candidate for the 2020 Democratic presidential nomination, serves on the Senate Banking Committee.

The bank has paid over $5 billion in fines and has been placed under an unprecedented asset cap by the Fed for selling potentially millions of fake accounts to customers, among other issues, in a series of longrunning scandals https://www.reuters.com/article/us-wells-fargo-scandal-deal/wells-fargo-to-pay-3-billion-to-u-s-admits-pressuring-workers-in-fake-accounts-scandal-idUSKBN20F2KN that led to the ousters of two separate chief executives.

A spokesman for the Fed said the central bank had received the letter and planned to respond. In a statement, Wells Fargo said meeting regulatory expectations on risk management and control "remains Wells Fargo's top priority" and said "significant progress" had been made.

Warren's letter comes days after Wells was fined $250 million https://www.reuters.com/lifestyle/wealth/banking-regulator-fines-wells-fargo-250-mln-over-remediation-shortcomings-2021-09-09 by the Office of the Comptroller of the Currency, which chastised the bank for failing to adequately repay customers who had been charged improper or excessive fees.

In a separate letter to the bank's board, Warren pressed for specifics on current CEO Charles Scharf's compensation, including how much of it was based on the bank's ability to address regulatory shortcomings. She also called for details on the bank's timeline for addressing issues, noting that Scharf has been with the bank for nearly two years.

"You owe your customers, your investors, and your regulators an explanation for Wells Fargo’s ongoing inability to meet legal and regulatory requirements," she wrote. (Reporting by Pete Schroeder in Washington Additional reporting by Noor Zainab Hussain in Bengaluru Editing by Matthew Lewis)


ę Reuters 2021
Latest news "Economy & Forex"
02:45pU.s. dollar erases declines during powell news conference, last up 0.159%
RE
02:41pWall St extends gains following Fed statement
RE
02:41pCHINA EVERGRANDE : Wall St extends gains following Fed statement
RE
02:40pSpot gold turns negative, last down 0.2%
RE
02:40pFed policymakers see upward march in interest rates starting next year
RE
02:38pSpot gold pares gains as fed chair powell speaks
RE
02:35pYellen stressed importance of withdrawing digital services taxes in call with UK
RE
02:34pBrazil economic outlook murky but risks are balanced -IMF
RE
02:33pFOMC teases start of taper "soon"
RE
02:32pInvestors watch U.S. companies' record profit margins as costs rise further
RE
Latest news "Economy & Forex"