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& Co. should correct its governance and danger-management concerns, the chairman of the U.S. Senate Banking Committee said, highlighting what he named a “laundry list” of purchaser abuses and compliance breakdowns.
The lender has been plagued by weaknesses in its governance and risk-administration tactics for almost a ten years,
(D., Ohio) claimed in an open letter sent Tuesday to Wells Fargo Main Executive
“It is apparent that Wells Fargo however has a long way to go to repair its governance and chance administration right before it need to be permitted to grow in size,” Sen. Brown wrote. “It is unacceptable that just after many years of failed makes an attempt, nothing at all would seem to have improved.”
A spokeswoman for Wells Fargo didn’t instantly respond to a ask for for comment.
Sen. Brown highlighted a $7 million penalty the U.S. Securities and Exchange Commission imposed on a Wells Fargo unit before this thirty day period for violations of anti-cash-laundering policies. Wells Fargo also was fined $250 million in September for its failure to handle longstanding challenges in its mortgage loan company.
Sen. Brown also pointed to a latest news report in which a former employee alleged that Wells Fargo performed faux interviews of Black and feminine task applicants to give a fake impact that it was attempting to diversify its workforce.
Wells Fargo’s failure to combat alleged lending discrimination and raise variety amid its personnel elevated questions about the bank’s means to deal with “myriad internal controls, hazard management and standard governance issues,” Sen. Brown said.
The senator claimed he anticipated Mr. Scharf to make a program to reform the bank’s possibility management and inside controls.
Mr. Scharf gained $24.5 million very last yr, obtaining a 20% increase as the lender recovered from its pandemic slump. He took over as the company’s top executive in October 2019.
Produce to Richard Vanderford at [email protected]
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