Posted on 06/19/2017 7:28:33 PM PDT by Tolerance Sucks Rocks
Sen. Elizabeth Warren is calling for the ouster of 12 board members at Wells Fargo due to the fake accounts scandal that has rocked the bank.
In a letter sent Monday to Federal Reserve Chair Janet Yellen, the Massachusetts Democrat said the scandal has "revealed severe problems with the bank's risk management practices." Warren said the central bank has the authority under federal statute to remove the members who were on the board as the matter transpired.
"We have received the letter and plan to respond," a Fed spokesman told CNBC.
In an agreement with multiple authorities last September, Wells agreed to pay a $185 million fine in conjunction with a scandal in which some 2 million client accounts were created without the customers' knowledge.
More accounts may be involved, according to subsequent allegations.
Even after paying the fine, Wells has continued to undergo reputational damage amid congressional inquiries and additional disclosures
Warren, who has been a harsh critic, pointed out in the letter multiple instances where she believes the board at Wells failed customers.
"The fake accounts scandal cost Wells Fargo customers millions of dollars in unauthorized fees and damaged many of their credit scores," the senator wrote. "The scandal also revealed severe problems with the bank's risk management practices — problems that justify the Federal Reserve's removal of all responsible Board members."
Wells Fargo did not respond to a request for comment. Wells Fargo shares gained about 1.1 percent in early trading, about in line with the sector.
Warren did not limit her criticism to Wells — she also said the Fed "has done nothing to date" to punish the bank "despite its ample statutory authority."
"I urge you to use the tools Congress has given you to remove the responsible board members and protect the continued safety and soundness of one of the country's largest banks," she wrote.
The scandal arose as bank employees sought to meet aggressive sales demands. Employees would enroll customers in various programs without their consent in order to make quotas that have since been disbanded.
Some 5,300 employees have been terminated as a result, and the bank also has a new CEO, Timothy J. Sloan, who took over for John Stumpf.
For the Fed to act, it would need to establish that any individual board member's actions were unsafe or unsound to the bank. The Fed likely would need to initiate an enforcement action and prove its case.
Yellen told Congress during testimony shortly after the scandal broke in September that the Fed is reviewing all operations for large banks and believes that in cases of wrongdoing, "senior management (should) be held accountable."
Wow,liberal pandering apparently has no limits... hold the presses....
Lol
The directors had no idea what was going on.
They fired the people doing the bad stuff. They fired the guy in charge.
Liz Warren has no business telling any company what to do.
Agree with Wapum Warren.
Yeah, right, THAT’LL make Wells Fargo behave.
I call for the removal of the fake news boards of directors... Time Warner, Disney, New York Times, Gannett News.....
Only if you cannot define what actions these board members took to contribute to this problem.
Why doesn’t she appeal to Warren Buffett. He is a major stock holder getting wealthier off of this. Oh that’s right he is a big dem therefore untouchable.
Does the Fed have the right to demand a bank’s officers to resign? I thought they could pull their membership in the Fed system, but had no idea they could recall the officers.
The prospect of anal sex keeps most people straight-more ways than one.
I don’t know but every time I see or hear her name I want to throw up a little.
She’s finally adressing a real problem, just in time for her reelection, instead pandering to numbskull trust fund babies sleeping in tents ruining our financial districts. I guess WF didn’t pay her off the way State Street Bank did.
Real Indians don’t rob stage coaches.
White wampum man need bring wampum to squaw so squaw can be Big Chief. Then squaw smoke peace pipe with white wampum man.
Stay tuned, however, because it is only a matter of time before our Federal Reserve creates enough electronic money out of thin air and buys sufficient levels of corporate equity so that they will in that way start to influence corporate policy. Only a matter of time...
Take a look at Japan (which is ahead of the USA in this area) ... their central bank (Bank of Japan) is already the number one owner of exchange traded funds on the Japanese stock exchange. Fast forward and just watch how the US Fed will eventually get there to prop up markets and to keep underfunded and eventually insolvent pension funds from collapse... The problem is, however, that this just dilutes the ownership interest of those who actually did something of value to acquire their ownership interests. Sigh....
Where was the Indian princess when COMEY/HSBC was LAUNDERING MONEY FOR THE SINALOA CARTEL...??? MAKING $10 MILLION PER YEAR...
Oh i forgot.... he’s a democrat scumbag... A CROOKED CLOWN...
Precisely!
Ms. Warren just wants some adoring ink and some scalps, and does not care what lives she ruins.
A Warren presidency would have no regard for people.
None.
I call for Warren to be removed from government office because of her achieving her status via lies and cultural appropriation.
Socialism.
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