Today, United States Senator Elizabeth Warren (D-Mass.) released the following statement on the Federal Reserve’s decision to freeze the growth of Wells Fargo and remove four of its board members:
“For months, I have repeatedly pressed Janet Yellen to hold Wells Fargo accountable for its fake accounts scam and push out responsible Board Members. Today she did it – in her last act as Fed Chair. Fines alone will never rein in fraudulent behavior at the big banks and by pushing out Board Members at Wells Fargo, Chair Yellen sends a strong message. Her decision today demonstrates that we have the tools to rein in Wall Street – if our regulators have the guts to use them,”
“The massive fraud at Wells Fargo showed the whole country that we need more accountability on Wall Street. But for more than a year, we’ve watched as President Trump and his administration raced to turn big banks loose again to once again threaten our whole economy. Trump has filled our top economic jobs with people obsessed with sucking up to Wall Street. Today is Chair Yellen’s last day at the Fed. Tomorrow, her replacement will face a choice: show the same kind of courage – or own the next financial crisis.”
Today, Chair Yellen sent a letter in response to Senator Warren’s many calls for removing Wells Fargo Board Members. Read the letter detailing the Fed’s actions against Wells Fargo
Starting in June 2017, Senator Warren urged Chair Yellen to remove 12 Wells Fargo Board Members following the fake accounts scandal.
Following her letter, Senator Warren questioned Chair Yellen in a Senate Banking Committee hearing on the Fed’s actions against Wells Fargo.
Senator Warren again pressed the Fed to remove Wells Fargo Board Members in July 2017 after it was reported that more than 800,000 Wells Fargo customers were charged for auto insurance they did not need.
In August 2017, Senator Warren renewed her calls for removal of Wells Fargo Board Members amid new evidence that the bank failed to refund money owed to car loan customers, that it overcharged small businesses for credit card transactions, and that it billed certain mortgage customers for unexpected optional services.