Tuesday, September 28, 2021

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    Elizabeth Warren urges Federal Reserve to dissolve Wells Fargo

    Senator Elizabeth Warren, a Democrat from Massachusetts, spoke to U.S. President Donald Trump of the U.S. Federal Reserve Board at a confirmation hearing of the U.S. Senate Banking Commission on Tuesday, November 28, 2017 in Washington, DC. Ask the candidate Jerome Powell. ..

    Andrew Haller | Bloomberg | Getty Images

    Sen. Elizabeth Warren Prompted the Federal Reserve Board to dissolve on Tuesday Wells FargoConsumers are at risk when they claim a series of scandals with financial giants.

    of letter To the Federal Reserve Board Jerome PowellThe Massachusetts Democratic Party has called on the governor of the central bank to use its authority to separate Wells Fargo’s banking sector from the financial services business. She said Wells Fargo could be dissolved by revoking the Fed’s license to operate as a financial holding company.

    “The Fed has the power to put consumers first and must use it,” Warren wrote. “By exercising full power to protect consumers and the financial system and requiring Wells Fargo to separate its consumer banking sector from other financial activities, the Fed has made Wells Fargo unable to govern for many years. You can be assured that you will face the right results for your actions. “

    Wells Fargo did not immediately respond to the request for comment.

    The company’s share price was up about 2% on Tuesday morning.

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    Washington has increased its scrutiny of Wells Fargo’s practices since its 2016 revelations that Wells Fargo unknowingly created millions of bank accounts in the name of a real person without consent. Wells Fargo has paid over $ 4 billion in fines since the scandal came to light.

    That wasn’t the only problem with the company.Office of the Comptroller of the Currency last week Fines Wells Fargo $ 250 millionA measure requiring financial institutions to address violations of regulatory standards, stating that they have violated the 2018 Consent Order.

    Still, Wells Fargo said last week that the 2016 Consumer Financial Protection Bureau’s consent order related to fake account scandals had expired. This may indicate that government pressure on businesses has eased.

    The Fed set an asset cap on Wells Fargo in 2018.

    Warren quoted a scandal from fake accounts and other practices in Wells Fargo’s security and wealth management business, saying that the company “cannot meet regulatory requirements and treat consumers honestly and fairly. He claimed to be an “irreparable repeat offender.”

    — CNBC’s Hughson contributed to this report

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    Elizabeth Warren urges Federal Reserve to dissolve Wells Fargo

    Source link Elizabeth Warren urges Federal Reserve to dissolve Wells Fargo

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