The United States Federal Reserve announced Tuesday that Wells Fargo is no longer subject to the bank. The Federal Reserve determined that Wells Fargo has met all the conditions required by the coercive measure of 2018 for the elimination of that corset that for seven years has prevented him from increasing the size of his balance and has conditioned his management.
The Federal Reserve imposed that restriction in response to the generalized abuse of consumers, including the opening of accounts without consent, and other normative infractions committed by the entity. The supervisor demanded that the bank improve its risk management and risk management program and to submit said improvements to an external review to raise that veto to growth.
The succession of scandals led the Federal Reserve to the size of its balance in 2017, until it could demonstrate that it protects its clients against the abuses. The impossibility of growing has deprived the entity of billions of dollars of benefits. The bank has celebrated the decision, which had been waiting for months.
“The decision of the Federal Reserve to raise the asset limit marks a fundamental milestone in our path to the transformation of Wells Fargo. Today we are a different and much stronger entity thanks to the work we have done”, “In addition, we have changed and simplified our combination of business, and we have transformed the management team and the way in which we manage the entity. We have put into the future of the entity, while we have improved our financial results. Very excited to move forward with our plans to further increase profitability and growth in a deliberate form, with the support of the cultural processes and changes that we have carried out, ”he added.
The scandals in the consumption operations of Wells Fargo exploded in 2016 with the problems of the entity grew as new irregularities in business lines such as mortgages and car loans. The irregularities extended at least 2002 to 2016 and included create false records or improperly appropriate identities. The direction knew about the problem of fictitious accounts since years before a scandal broke out that generated a great political stir.
Scharf celebrated the passage on Tuesday as a great milestone for the 215,000 employees of the entity. “As a sample of our thanks for what we have achieved together, all full -time employees from Wells Fargo will receive a special gratification of 2000 dollars. For the majority, it will be in the form of a granting of restricted shares. A prize of 2000 dollars means different things for each person, but we wanted everyone to, including the ATMs, the representatives of the Customer Service Center, the administrative assistants, the operations staff, the bankers, the bankers. Corporate, they had the opportunity to own a part of Wells Fargo and, hopefully, benefit from our future success, ”he explains.
The bank’s actions rose with force this Tuesday after the announcement, outside the usual hiring schedule. Some other restrictions imposed by the Federal Reserve remain in force. The elimination of growth restriction reflects the important advances that the bank has made to correct its deficiencies and that has met the necessary conditions for the elimination of said restriction, says the supervisor. The other provisions of the 2018 coercive measure will remain in force until the bank meets the requirements for repeal.
Wells Fargo to settle US investigations on more than a decade of generalized abuses against their clients. Then, the to set out demands for irregularities in the management of mortgages, loans for the purchase of cars and abusive collection of commissions. Also pay $ 1 billion (just over 900 million euros) to shareholders in their attempt to resolve a collective claim related to.
