Wells Fargo & Co. must resolve its governance and risk-management difficulties, the chairman of the U.S. Senate Banking Committee explained, highlighting what he known as a “laundry list” of buyer abuses and compliance breakdowns.
The financial institution has been plagued by weaknesses in its governance and risk-management practices for just about a decade, Sherrod Brown (D., Ohio) said in an open letter sent Tuesday to Wells Fargo Main Executive Charles Scharf.
GET FOX Organization ON THE GO BY CLICKING In this article
“It is apparent that Wells Fargo nevertheless has a prolonged way to go to repair its governance and threat management before it should be permitted to increase in sizing,” Sen. Brown wrote. “It is unacceptable that following decades of failed attempts, nothing at all would seem to have enhanced.”
A spokeswoman for Wells Fargo did not right away reply to a ask for for comment.
WELLS FARGO ACCUSED OF Keeping Bogus Work INTERVIEWS WITH MINORITY CANDIDATES: REPORT
Sen. Brown highlighted a $7 million penalty the U.S. Securities and Trade Fee imposed on a Wells Fargo unit previously this thirty day period for violations of anti-cash-laundering regulations. Wells Fargo also was fined $250 million in September for its failure to address longstanding challenges in its mortgage loan enterprise.
Sen. Brown also pointed to a latest information report in which a previous personnel alleged that Wells Fargo carried out faux interviews of Black and woman job candidates to give a false effect that it was seeking to diversify its workforce.
US Financial system HEADING INTO DOWNTURN, WELLS FARGO CEO WARNS: ‘NO QUESTION’
Wells Fargo’s failure to fight alleged lending discrimination and increase variety amid its team raised inquiries about the bank’s potential to tackle “myriad inside controls, hazard administration and basic governance difficulties,” Sen. Brown explained.
|WFC||WELLS FARGO & CO.||45.77||-.12||-.26%|
The senator explained he expected Mr. Scharf to make a program to reform the bank’s risk management and internal controls.
Mr. Scharf gained $24.5 million very last calendar year, acquiring a 20% elevate as the financial institution recovered from its pandemic slump. He took more than as the company’s prime executive in Oct 2019.
Write to Richard Vanderford at email@example.com