U.S. Senate banking panel urges Wells Fargo to 'finally' fix problems
Reuters
Published May 31, 2022 12:17PM ET
Updated May 31, 2022 11:31PM ET
By Pete Schroeder
WASHINGTON (Reuters) -The head of the U.S. Senate Banking Committee on Tuesday called on Wells Fargo (NYSE:WFC) & Co Chief Executive Charles Scharf to "finally" address weaknesses at the bank, including "governance, risk management, and hiring practices."
In a letter to the CEO, Senator Sherrod Brown said the bank, which remains under a regulatory limit on its growth due to a large fake accounts scandal and other problems, has much more work to do to address its shortcomings.
"It is clear that Wells Fargo still has a long way to go to fix its governance and risk management before it should be allowed to grow in size," he wrote. "It is unacceptable that after years of failed attempts, nothing seems to have improved."
Brown added that he expects Scharf, who took over in 2019 and was tasked with steering the bank clear of past scandals, to testify at a hearing this year with large bank CEOs. Brown's letter did not specify a date for that hearing.
Spokespeople for Wells Fargo did not immediately respond to a request for comment.
The No. 4 U.S. bank has operated under an asset cap imposed by the Federal Reserve since 2018, an unprecedented move taken by regulators in response to "widespread consumer abuses and other compliance breakdowns." The bank has remained under scrutiny by Democrats in Congress. Some, like Senator Elizabeth Warren, have gone as far as to say the bank should be broken up.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.