Wells Fargo to stop growth after compliance concerns with Fed
(MENAFN) Wells Fargo was ordered by the Federal Reserve for its development to be cut short after experiencing "widespread consumer abuses and other compliance breakdowns".
In a statement, the Federal Reserve Board declared that it "would restrict the growth of the firm until it sufficiently improves its governance and controls."
It continued "concurrently with the Board's action, Wells Fargo will replace three current board members by April and a fourth board member by the end of the year."
It also announced that until the bank proves its compliance and obedience of governance rules, it is prohibited from growing past its end of 2017 size. It is also required to hand over in sixty days a strategy that shows its plans to attend to the Fed's concerns.
In a statement, the Federal Reserve Board declared that it "would restrict the growth of the firm until it sufficiently improves its governance and controls."
It continued "concurrently with the Board's action, Wells Fargo will replace three current board members by April and a fourth board member by the end of the year."
It also announced that until the bank proves its compliance and obedience of governance rules, it is prohibited from growing past its end of 2017 size. It is also required to hand over in sixty days a strategy that shows its plans to attend to the Fed's concerns.
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