(UnitedReader.com) – Wells Fargo is one of the biggest banking names in the United States. Yet, it isn’t safe from its own scandals. In 2016, investigators caught the company creating fake accounts in customers’ names and charging them unnecessary fees without their knowledge. Since then, the US Government regularly targets the problematic bank. Senator Elizabeth Warren of Massachusetts, doesn’t feel they go far enough.
On Tuesday, the Democratic Senator encouraged Federal Reserve Chairman Jerome Powell to take action against the bank. Warren sent him a letter claiming that the bank’s corruption and numerous scandals represent a serious risk to consumers.
.@WellsFargo hired a new CEO and called ending this corruption a “top priority.” It’s been two years, he’s been paid $50 million, and Wells still can’t follow the law. Now the Fed must act and revoke Wells’ status as a financial holding company.https://t.co/sVFMms5cbI
— Elizabeth Warren (@SenWarren) September 14, 2021
Warren believes the Federal Reserve should use its power to revoke the financial holding company’s status under the Bank Holding Company Act. Wells Fargo, on the other hand, disagrees. Spokespersons for the bank claimed it isn’t the same company it was five years ago. They said the organization already took steps to correct any previous wrongdoing.
The bank’s representatives point to bank actions such as dividing business units to create smaller teams, establishing groups to better monitor risks and sales practices, and changing leaders within the company as proof of their accomplishments. Yet, for Warren, this isn’t enough. Only time will tell whether their efforts will make a difference. But is it already too late?
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