{"id":753769,"date":"2021-09-15T03:21:00","date_gmt":"2021-09-15T07:21:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=753769"},"modified":"2021-09-15T08:27:26","modified_gmt":"2021-09-15T12:27:26","slug":"elizabeth-warren-urges-federal-reserve-to-break-up-wells-fargo","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elizabeth-warren-urges-federal-reserve-to-break-up-wells-fargo\/","title":{"rendered":"Elizabeth Warren Urges Federal Reserve to Break up Wells Fargo"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Felizabeth-warren-urges-federal-reserve-to-break-up-wells-fargo%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=753769&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Sen. Elizabeth Warren (D-Mass.) sent a letter to the <a href=\"https:\/\/www.theepochtimes.com\/t-federal-reserve\">Federal Reserve<\/a> on Monday urging them to break up\u00a0<a href=\"https:\/\/www.theepochtimes.com\/t-wells-fargo\">Wells Fargo<\/a> and\u00a0take \u201cimmediate action\u201d regarding its \u201cunethical and anti-consumer conduct\u201d.<\/p>\n<p>In a <a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/Letter%20from%20Senator%20Warren%20to%20Fed%20on%20Wells%20Fargo%20FHC%20Status%2009.13.2021.pdf\">letter to Fed Chairman Jerome Powell,<\/a> Warren noted that widespread corruption within the\u00a0scandal-plagued bank poses\u00a0\u201csubstantial risks\u201d to both consumers and the financial system, and asked that the Fed revoke Wells Fargo\u2019s status as a financial holding company and require the company to separate its traditional banking activities from its other financial activities.<\/p>\n<p>\u201cI write to urge the Federal Reserve Board of Governors to take immediate action in response to the repeated, ongoing, and inexcusable failure of Wells Fargo &amp; Company to eliminate abusive and unlawful practices that have cost consumers hundreds of millions of dollars,\u201d\u00a0Warren wrote.<\/p>\n<p>The Fed, under the leadership of Janet Yellen,\u00a0placed Wells Fargo under an asset cap of below $1.95 trillion in 2018\u00a0until it had improved its governance and risk controls following\u00a0widespread consumer abuses and other compliance breakdowns.<\/p>\n<p>It came after the financial service was found to have made millions by creating\u00a0fake accounts for customers without their knowledge, on some occasions even charging unnecessary fees.<\/p>\n<p>Warren noted that multiple revelations had surfaced regarding\u00a0Wells Fargo\u2019s\u00a0\u201cunethical and anti-consumer conduct\u201d even since the cap was put in place, and urged the Fed to take action to protect consumers.<\/p>\n<p>\u201cThese new revelations have once again made clear that continuing to allow this giant bank with a broken culture to conduct business in its current form poses substantial risks to consumers and the financial system,\u201d\u00a0Warren wrote.<\/p>\n<p>\u201cFor this reason, the Fed should use its longstanding authority under the Bank Holding Company Act to revoke Wells Fargo\u2019s status as a financial holding company (FHC) and require that it separate its bank subsidiary from its other financial activities.\u201d<\/p>\n<p>\u201cWells Fargo is an irredeemable repeat offender; the Fed must act,\u201d she added.<\/p>\n<p>Last week,\u00a0regulators at the <a href=\"https:\/\/www.theepochtimes.com\/wells-fargo-hit-with-new-250-million-fine-for-failure-to-pay-back-wronged-customers_3991462.html\">Office of the Comptroller of the Currency<\/a> (OCC), the banking regulator within the Treasury Department, fined\u00a0Wells Fargo\u00a0$250 million\u00a0for\u00a0being too slow to compensate\u00a0victims\u00a0harmed by the bank\u2019s previous abusive practices regarding mortgage lending.<img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full\" src=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2021\/09\/10\/wells-fargo-1200x800.jpg\" width=\"1200\" height=\"800\" \/><\/p>\n<figure id=\"attachment_3991469\" class=\"wp-caption alignnone\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-3991469\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/09\/wells-fargo-600x400-1.jpg\" alt=\"wells-fargo\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption>&nbsp;<\/p>\n<p>A woman walks past Wells Fargo bank in New York City on March 17, 2020. (Jeenah Moon\/Reuters)<\/figure>\n<p>Despite this and the firm assets cap imposed by regulators, Warren noted that\u00a0Wells Fargo is \u201cactively working to expand its investment bank,\u201d and is conducting \u201crisky activities\u201d such as lending to <a href=\"https:\/\/www.theepochtimes.com\/t-hedge-funds\">hedge funds<\/a> \u201clooking to ramp up bets\u201d\u00a0which she said could potentially lead to set more losses among customers.<\/p>\n<p>\u201cEvery single day that Wells Fargo continues to maintain these depository accounts is a day that millions of customers remain at risk of additional negligence and wilful fraud,\u201d Warren continued.<\/p>\n<p>\u201cThe only way these consumers and their bank accounts can be kept safe is through another institution\u2014one whose business model is not dependent on swindling customers for every last penny they can get. The Fed has the power to put consumers first, and it must use it,\u201d she said.<\/p>\n<p>\u201cBy invoking its full authority to protect consumers and the financial system and requiring Wells Fargo to separate its consumer-facing banking arm from the rest of its financial activities, the Fed can ensure that Wells Fargo faces appropriate consequences for its longstanding ungovernable behavior.\u201d<\/p>\n<p>While\u00a0Wells Fargo did not directly respond to\u00a0Warren\u2019s letter, the banking service did<a href=\"https:\/\/newsroom.wf.com\/English\/news-releases\/news-release-details\/2021\/Wells-Fargo-Affirms-Focus-on-Building-Strong-Risk-and-Control-Foundation\/default.aspx\"> release a statement<\/a> on Tuesday saying it is\u00a0committed to serving customers with \u201cthe highest standards.\u201d<\/p>\n<p>\u201cWe are a different bank today than we were five years ago because we\u2019ve made significant progress,\u201d the bank said before sharing a list of changes it had made in order to create \u201cgreater oversight and transparency.\u201d<\/p>\n<p>The bank also noted it had made \u201csignificant progress in reducing the total number of customer remediations we have to complete and in accelerating remediation payments to our customers.\u201d<\/p>\n<div class=\"one_author_block round\">\n<div class=\"top_row\"><img decoding=\"async\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/default-user.png\" alt=\"Katabella Roberts\" \/><\/p>\n<div class=\"names\">\n<p>Katabella Roberts<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Sen. Elizabeth Warren (D-Mass.) sent a letter to the Federal Reserve on Monday urging them to break up\u00a0Wells Fargo and\u00a0take \u201cimmediate action\u201d regarding its \u201cunethical and anti-consumer conduct\u201d. In a &#8230;<\/p>\n","protected":false},"author":7,"featured_media":2315279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-753769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/753769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=753769"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/753769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=753769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=753769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=753769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}