Mon, Feb 5, 2018
In her last day as Federal Reserve Chair, Janet Yellen delivered a significant blow to Wells Fargo. The Fed imposed a consent order that prohibits the bank from growing its assets any larger until a remediation plan is approved.
The unprecedented sanctions follow a series of consumer abuses and compliance lapses that included revelations that branch employees opened millions of accounts without customer permission to meet aggressive sales targets. That was followed by revelations that auto-loan clients were forced to pay for unwanted car insurance and that mortgage customers were improperly charged fees.
The agreement, which has been in the works for months, marks the first time that the Federal Reserve has placed limits on a bank’s assets.