What You Need to Know
- The bank needs to address its longstanding risk management failures, Brown said.
- Racial disparities in mortgage lending, fake job interviews and anti-money laundering violations add to the list of infractions.
Sen. Sherrod Brown, D-Ohio, chairman of the Senate Banking Committee, told Wells Fargo CEO Charles Scharf in a recent letter to fix “the laundry list of consumer abuses and compliance breakdowns” that have occurred at the bank.
“Recent revelations of racial disparities in mortgage lending, fake job interviews for minority and female candidates, and anti-money laundering violations are troubling as Wells Fargo, unfortunately, continues to demonstrate its inability to address its longstanding risk management failures,” Brown said in a May 31 letter.
The recent problems, Brown continued, “add to the laundry list of consumer abuses and compliance breakdowns that led to the imposition of a growth restriction on your bank in 2018 until your firm improves its governance and controls.”
On May 20, Wells Fargo agreed to pay the Securities and Exchange Commission $7 million for failing to file at least 34 suspicious activity reports in a timely manner.
Brown urged Scharf “once and for all” to address Wells Fargo’s “governance, risk management, and hiring practices — weaknesses that have plagued the bank for almost a decade.”