Fed imposes growth cap after ‘consumer abuses’ at Wells Fargo
Troubled lender not allowed to expand assets further until governance and controls are improved
The US Federal Reserve Board has capped the growth of bank Wells Fargo and overseen the departure of four board members as the scandal-hit lender cleans up its act.
Wells Fargo will be restricted to its total assets at the end of 2017, a figure of around $1.9 trillion, “until it sufficiently improves its governance and controls”, the Fed says in a statement. The bank will also replace three board members by April and a fourth by the end of the year.
The strict penalty was one of the last acts
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