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Sen. Elizabeth Warren Calls For Removal Of 12 Wells Fargo Board Members Over Fake Accounts Scandal: Report

Corporate Greed

Sen. Elizabeth Warren Calls For Removal Of 12 Wells Fargo Board Members Over Fake Accounts Scandal: Report

Sen. Elizabeth Warren (D-Mass.) called Monday for the removal of 12 Wells Fargo board members over the fake accounts scandal, according to a CNBC report

In a letter sent Monday to Federal Reserve Chair Janet Yellen, Warren said the scandal has “revealed severe problems with the bank’s risk management practices.”




“I urge you to use the tools Congress has given you to remove the responsible board members and protect the continued safety and soundness of one of the country’s largest banks,” Warren wrote.

“The fake accounts scandal cost Wells Fargo customers millions of dollars in unauthorized fees and damaged many of their credit scores,” the senator wrote. “The scandal also revealed severe problems with the bank’s risk management practices — problems that justify the Federal Reserve’s removal of all responsible Board members.”

“We have received the letter and plan to respond,” a Fed spokesman told CNBC.

The Hill added:

“Wells Fargo agreed to pay a $185 million fine to settle claims from the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency (OCC), and the Los Angeles city attorney that employees had opened over 2 million bank accounts without customer’s knowledge or permission from May 2011 until July 2015.

Employees were reportedly opening these accounts in order to “satisfy sales goals and earn financial rewards under the bank’s incentive-compensation program,” according to the Los Angeles city attorney.

About 5,300 employees were fired as a result of the allegations and the bank announced early in 2017 that the employee sales goals program — which many pointed to as partly a motivating factor — would end.”




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