Financial services company Wells Fargo & Company has expressed its commitment to satisfy the requirements of the consent order agreed with the Board of Governors of the Federal Reserve System.
The consent order requires the company to provide plans to further enhance the board’s governance oversight as well as its compliance and operational risk management within 60 days.
It would also include the steps already taken and the planned initiatives.
The order also provides for third-party reviews of such plans, which, until approved and executed will restrict the growth of the company’s total consolidated assets to its 31 December, 2017 level.
After procuring Federal Reserve approval for the plan, Wells Fargo will engage independent third parties to review adoption and implementation of the plans. The review needs to be completed before 30 September 2018.
The asset limitation of the company will be lifted after the completion of third-party reviews to the satisfaction of the Federal Reserve, following which, a second third-party review will be initiated to evaluate the efficacy and sustainability of the risk management improvements.
Wells Fargo’s president and CEO Timothy J. Sloan said: “We take this order seriously and are focused on addressing all of the Federal Reserve’s concerns.
“It is important to note that the consent order is not related to any new matters, but to prior issues where we have already made significant progress.
“We appreciate the Federal Reserve’s acknowledgment of our actions to date. In addition, the order is not related to Wells Fargo’s financial condition — we remain in a strong financial position and stand ready to serve the varied financial needs of our customers.”