Federal Reserve Imposes New Penalties on Wells Fargo

(From CBS News)

The Federal Reserve is imposing more penalties on Wells Fargo, freezing the bank’s growth until it can prove it has improved its internal controls.

“Until the firm makes sufficient improvements, it will be restricted from growing any larger than its total asset size as of the end of 2017,” the Fed announced in a statement. “The Board’s consent cease and desist order with Wells Fargo requires the firm to improve its governance and risk management processes, including strengthening the effectiveness of oversight by its board of directors.”

In addition, the San Francisco-based bank agreed to replace three board members by April and a fourth by the end of this year.

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