Senator Warren urges U.S. Fed to fire Wells Fargo directors


Reuters

By Patrick RuckerWASHINGTON, June 19 (Reuters) - U.S. Democratic Senator
Elizabeth Warren on Monday urged the Federal Reserve to fire 12
directors who served on Wells Fargo & Co's <WFC.N> board during
the time thousands of bank employees opened phony accounts in
customers' names without permission.
    "I urge you to exercise your legal authority to remove the
holdover Wells Fargo board members," Warren, who has championed
consumer rights and is seen as a possible 2020 presidential
candidate, wrote in a letter to the U.S. central bank.
    Warren said the Fed, which regulates bank holding companies,
had the right to take such action when a lender had assumed too
much risk, which she said applied in the case of Wells Fargo,
the third largest U.S. bank.
    Warren is the ranking Democrat on the Senate Banking
Committee.
    Wells Fargo's reputation was damaged last year after
revelations that employees had created as many as 2.1 million
unauthorized accounts to hit aggressive sales targets set by
management.
    In April of this year, investors voted to back the Wells
Fargo board by a narrow margin. [nL1N1HX0S5]
    A Fed spokesman said the central bank had received Warren's
letter on Monday and planned to respond.
    Wells Fargo said on Monday it had already taken steps to
recover from its crisis and hold executives accountable.
    "That work continues and remains a core part of our efforts
to build a better Wells Fargo for the future," a company
spokeswoman said.
    The Fed has removed members of bank holding companies'
boards in the past.
    Fed Chair Janet Yellen told U.S. lawmakers last year that
her staff was seeking out abuses among the largest Wall Street
banks because of what she described as "a very disturbing
pattern of violations."

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Warren's letter to Federal Reserve    https://www.warren.senate.gov/files/documents/2017-6-19_Warren_Ltr_to_Fed.pdf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Patrick Rucker; Editing by Paul Simao)
 ((patrick.rucker@thomsonreuters.com; +202 354 5858; Reuters
Messaging: patrick.rucker.reuters.com@reuters.net))

Keywords: WELLS FARGO FED/



This article appears in: Stocks , World Markets , Economy , Banking and Loans
Referenced Symbols: WFC


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