US Senator Elizabeth Warren has written a letter to the Federal Reserve urging it to revoke Wells Fargo’s status as a financial holding company.
The Senator, who is Chair of Senate Banking Committee, Subcommittee on Economic Policy, has asked the central authority to split Wells Fargo’s bank subsidiary from its other financial activities.
Go deeper with GlobalData
This follows Wells Fargo receiving a civil money penalty from a regulator, which issued a fine of $250m and placed restrictions on the bank’s business.
The Senator called Wells Fargo “an irredeemable repeat offender” and presented several examples of lender’s financial misconduct.
Warren added: “Every single day that Wells Fargo continues to maintain these depository accounts is a day that millions of customers remain at risk of additional negligence and willful fraud.
“The only way these consumers and their bank accounts can be kept safe is through another institution—one whose business model is not dependent on swindling customers for every last penny they can get. The Fed has the power to put consumers first, and it must use it.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe lender put out a press note highlighting its efforts and steps taken to meet the regulator’s requirement.
Wells Fargo said: “We are a different bank today than we were five years ago because we’ve made significant progress.”
In a separate development, several media outlets reported citing an internal memo that Wells Fargo has pushed back the return-to-office date for employees to 1 November 2021.
