FILE PHOTO: A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S. February 10, 2015. “Our marching orders to our team are, go out and serve your customers, fulfill our vision, take deposits, make loans. We are open for business.”While Sloan said he takes the matter seriously, he also characterized it as the latest step in a risk-management and corporate governance overhaul that Wells Fargo began some time ago, when it realized it had a serious problem with sales practices.The bank reached a $190 million settlement with the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency and a Los Angeles prosecutor in September 2016 over employees opening phony accounts in customers’ names without their permission to artificially hit internal targets. Once the Fed approves those plans, Wells will hire third-party consultants to review them and monitor its progress until the regulator is satisfied.The San Francisco Fed and top regulatory officials in Washington will lead the review, the central bank said.”We cannot tolerate pervasive and persistent misconduct at any bank,” said Chair Janet Yellen in a statement on her final day as leader of the central bank.Since the 2016 settlement, Wells has taken steps to enhance oversight at the board level, centralize risk-management functions and install new executives to oversee key businesses and control functions. Its board chair, Betsy Duke, is a former Fed governor, and it recently hired Sarah Dahlgren, a former New York Fed official, as its head of regulatory relations.

Source: Egypt Today February 04, 2018 08:37 UTC