U.S. Senate banking panel urges Wells Fargo to ‘finally’ fix problems
By Pete Schroeder
WASHINGTON (Reuters) -The top of the U.S. Senate Banking Committee on Tuesday known as on Wells Fargo & Co Chief Govt Charles Scharf to “lastly” deal with weaknesses on the financial institution, together with “governance, threat administration, and hiring practices.”
In a letter to the CEO, Senator Sherrod Brown stated the financial institution, which stays underneath a regulatory restrict on its development as a consequence of a big pretend accounts scandal and different issues, has way more work to do to handle its shortcomings.
“It’s clear that Wells Fargo nonetheless has a protracted solution to go to repair its governance and threat administration earlier than it needs to be allowed to develop in measurement,” he wrote. “It’s unacceptable that after years of failed makes an attempt, nothing appears to have improved.”
Brown added that he expects Scharf, who took over in 2019 and was tasked with steering the financial institution away from previous scandals, to testify at a listening to this yr with massive financial institution CEOs. Brown’s letter didn’t specify a date for that listening to.
Spokespeople for Wells Fargo didn’t instantly reply to a request for remark.
The No. 4 U.S. financial institution has operated underneath an asset cap imposed by the Federal Reserve since 2018, an unprecedented transfer taken by regulators in response to “widespread shopper abuses and different compliance breakdowns.” The financial institution has remained underneath scrutiny by Democrats in Congress. Some, like Senator Elizabeth Warren, have gone so far as to say the financial institution needs to be damaged up.
(Writing by Susan Heavey; enhancing by Kanishka Singh and David Gregorio)
