Politics & MoneyMortgage

Warren urges Fed to remove Wells Fargo CEO

Senator asks Fed chair to not allow Wells Fargo to grow until Sloan is removed

Sen. Elizabeth Warren is urging the Federal Reserve to require the removal of Wells Fargo CEO Tim Sloan if the bank wants to grow. 

According to a Reuters article, Warren, D-Mass., sent a letter to Fed Chair Jerome Powell urging him to not allow the embattled megabank to grow in size until it replaces Sloan. In her letter, Warren said Sloan is “deeply implicated” in the bank’s prior misconduct.

“The Wells Fargo Board of Directors cannot plausibly claim that it is ‘ensuring senior management’s ongoing effectiveness in managing the firm’s activities’ while retaining a CEO that helped oversee this much misconduct,” Warren wrote in her letter.

This isn’t the first time Warren has called for Sloan to be removed from his post. In August, Warren and fellow Senator Brian Schatz, D-Hawaii, demanded answers from the bank after the bank revealed that an error in its mortgage underwriting software led to hundreds of improperly denied mortgage modifications and unnecessary foreclosures.

Warren went a step further than Schatz and called for Sloan to be fired in a tweet.

In February, the Fed announced its intent to restrict the growth of Wells Fargo until it "sufficiently improves its governance and controls,” citing what it called compliance breakdowns and widespread consumer abuses as the primary motivations for the order.

"We cannot tolerate pervasive and persistent misconduct at any bank and the consumers harmed by Wells Fargo expect that robust and comprehensive reforms will be put in place to make certain that the abuses do not occur again," said outgoing Fed Chair Janet Yellen.

Most Popular Articles

The housing bubble boys blew it in 2020

The NAR existing home sales report released today blew out all estimates with 6,540,000 in existing home sales. This epic headline punctured any 2020 bubbles the housing bubble boys had left in their arsenal. But before we get too excited, keep in mind we are still down 0.2% year to date compared to 2019 levels. Still, this seems like a booming housing market, right?

Oct 22, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please