Waters Applauds Yellen’s Action to Penalize Wells Fargo for Widespread Consumer Abuses
Today, in response to the announcement that the Federal Reserve Board has moved to restrict the growth of Wells Fargo until it sufficiently improves its governance and controls, and that the bank will replace three current board members by April and a fourth board member by the end of the year, Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, made the following statement:
“I applaud Janet Yellen for her leadership in taking strong action to penalize Wells Fargo for its egregious pattern of consumer abuse. I am particularly pleased that the Federal Reserve Board has chosen to restrict the growth of the bank and that several members of the bank’s board will be replaced. Since 2016, I have been calling for Wells Fargo to face real penalties such as these. Such action is warranted and necessary in light of the bank’s many misdeeds, and sends a strong and resounding message to all megabanks that they must not abuse consumers.
In October, Ranking Member Waters introduced the Megabank Accountability and Consequences Act, which requires federal prudential banking regulators, such as the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board, to fully utilize their authorities to shut down megabanks that repeatedly harm consumers and hold culpable executives accountable.