Sen. Elizabeth Warren, D-Mass., grilled Federal Reserve Chair Jerome Powell on Thursday over the measures the U.S. central bank is taking to hold Wells Fargo accountable for consumer abuses dating back to 2016.
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The Fed said early last month it would restrict the growth of the bank until it “sufficiently improves its governance and controls,” and it replaces three board members by April and a fourth member by the end of the year. Furthermore, the central bank’s cease and desist order with the bank requires the firm to improve its “governance and risk management processes,” which includes boosting the effectiveness of oversight by its board.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| WFC | WELLS FARGO & COMPANY | 57.91 | -0.50 | -0.86% |
Warren pressed Powell on how assertive he would be in enforcing mandates that Wells Fargo remedy its abuses.
Powell, after being asked by Warren, said he would consider requiring the Fed’s board of governors to vote on whether the order is actually being followed, prior to the plans being approved. However, he said he would look into making the independent review of the bank public, with certain redactions, if necessary.
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