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Federal Reserve imposes new penalties on Wells Fargo

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Posted at 6:40 PM, Feb 02, 2018
and last updated 2018-02-02 18:40:43-05

WASHINGTON (AP) - The Federal Reserve is imposing more penalties on Wells Fargo, freezing the bank's growth until it can prove it has improved its internal controls.
    
In addition, the San Francisco-based bank agreed to replace three board members by April and a fourth by the end of this year.
    
The new penalties were announced late Friday on Fed Chair Janet Yellen's last day at the central bank.
    
In a statement, she said that the Fed "cannot tolerate pervasive and persistent misconduct at any bank."
    
Wells Fargo has admitted that employees opened more than 3 million fake accounts in order to meet sales quotas. It ended up paying $185 million to regulators and settled a class-action suit for $142 million.

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