2022 – US Senate Banking Committee urges Wells Fargo to solve problems ‘finally’ By Reuters


© Reuters.

Written by Peter Schroeder

WASHINGTON (Reuters) – The chairman of the US Senate Banking Committee called on Tuesday Wells Fargo (NYSE 🙂 and co-CEO Charles Scharf to “finally” address the bank’s weaknesses including its “governance, risk management and staffing practices.”

In a letter to the CEO, Senator Sherrod Brown said the bank, whose growth remains below the regulatory growth limit due to a massive fake account scandal and other problems, has a lot of work to do to fix its flaws.

He wrote: “It is clear that Wells Fargo still has a long way to go to improve its governance and risk management before it is allowed to expand.” “It is unacceptable that after years of failed attempts nothing seems to have improved.”

Brown added that he expected Scharf, who took office in 2019 and was tasked with clearing the bank of past scandals, to testify at a hearing before chief executives of major banks this year. No date was set for this hearing in Brown’s letter.

Wells Fargo spokesmen did not immediately respond to a request for comment.

The No. 4 US bank has been operating under the Fed’s asset cap since 2018, an unprecedented move by regulators in response to “widespread consumer abuse and other compliance violations.” The bank continued to be scrutinized by Democrats in Congress. Some, like Senator Elizabeth Warren, have gone so far as to say that the bank’s business should be terminated.

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