The Federal Deposit Insurance Corp. is one of the nation’s top banking regulators, but one of the agency’s former senior employees faces 20 years in jail for stealing confidential documents from the world’s largest banks while trying to get a job at those very same banks.
It’s been a rough few months for Wells Fargo, but the megabank got a rare bit of good news on Monday when the Federal Reserve Board and the Federal Deposit Insurance Corporation announced that the bank successfully remedied the issues in its 2015 “living will,” which will remove a series of sanctions from the bank.
Lately, it seems that Wells Fargo can’t even go a few days without another round of bad news. And Tuesday was another one of those bad-news days. Now, Wells Fargo is in trouble as the Federal Deposit Insurance Corp. and the Federal Reserve Board announced that the bank failed some of its “living will” tests and will be subject to business restrictions until the failures are remedied.
Both banks, which recently failed the living wills test set by the FDIC, say their first-quarter profits fell as they face “slumping oil prices, low interest rates and choppy financial markets,” writes Michael Corkery.
Five of the nation’s largest banks are not prepared for a financial crisis and would need taxpayer bailouts, the Board of Governors of the Federal Reserve System and the Board of Directors of the Federal Deposit Insurance Corporation announced Wednesday.
The Federal Reserve published the updated living wills of eleven big banks on Thursday. The wills go into more detail about how the firms will unwind themselves, or pursue bankruptcy, in the midst of a major crisis.