Wells Fargo & Co. should repair its governance and risk-management points, the chairman of the U.S. Senate Banking Committee stated, highlighting what he known as a “laundry record” of client abuses and compliance breakdowns.
The financial institution has been suffering from weaknesses in its governance and risk-management practices for almost a decade, Sherrod Brown (D., Ohio) stated in an open letter despatched Tuesday to Wells Fargo Chief Govt Charles Scharf.
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“It’s clear that Wells Fargo nonetheless has a protracted solution to go to repair its governance and danger administration earlier than it needs to be allowed to develop in dimension,” Sen. Brown wrote. “It’s unacceptable that after years of failed makes an attempt, nothing appears to have improved.”
A spokeswoman for Wells Fargo didn’t instantly reply to a request for remark.
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Sen. Brown highlighted a $7 million penalty the U.S. Securities and Change Fee imposed on a Wells Fargo unit earlier this month for violations of anti-money-laundering guidelines. Wells Fargo additionally was fined $250 million in September for its failure to handle longstanding issues in its mortgage enterprise.
Sen. Brown additionally pointed to a latest information report by which a former worker alleged that Wells Fargo performed pretend interviews of Black and feminine job candidates to offer a misunderstanding that it was attempting to diversify its workforce.
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Wells Fargo’s failure to fight alleged lending discrimination and improve range amongst its workers raised questions in regards to the financial institution’s capacity to handle “myriad inner controls, danger administration and common governance points,” Sen. Brown stated.
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The senator stated he anticipated Mr. Scharf to make a plan to reform the financial institution’s danger administration and inner controls.
Mr. Scharf earned $24.5 million final 12 months, receiving a 20% increase because the financial institution recovered from its pandemic stoop. He took over as the corporate’s prime government in October 2019.
Write to Richard Vanderford at [email protected]