& Co. should repair its governance and risk-management points, the chairman of the U.S. Senate Banking Committee mentioned, highlighting what he known as a “laundry record” of client abuses and compliance breakdowns.
The financial institution has been stricken by weaknesses in its governance and risk-management practices for almost a decade,
(D., Ohio) mentioned in an open letter despatched Tuesday to Wells Fargo Chief Government
“It’s clear that Wells Fargo nonetheless has an extended method to go to repair its governance and danger administration earlier than it needs to be allowed to develop in measurement,” 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.
Sen. Brown highlighted a $7 million penalty the U.S. Securities and Alternate 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 deal with longstanding issues in its mortgage enterprise.
Sen. Brown additionally pointed to a latest information report during which a former worker alleged that Wells Fargo performed pretend interviews of Black and feminine job candidates to provide a misunderstanding that it was attempting to diversify its workforce.
Wells Fargo’s failure to fight alleged lending discrimination and enhance range amongst its employees raised questions in regards to the financial institution’s capacity to deal with “myriad inner controls, danger administration and common governance points,” Sen. Brown mentioned.
The senator mentioned 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 yr, receiving a 20% increase because the financial institution recovered from its pandemic droop. He took over as the corporate’s prime government in October 2019.
Write to Richard Vanderford at [email protected]
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