Wells Fargo Informed by Senator to Resolve Its Danger-Administration Methods

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Wells Fargo CEO Charles Scharf attained $24.5 million last yr, up 20% from 2020.


Andrew Harrer/Bloomberg News

Wells Fargo

& Co. should repair its governance and hazard-administration challenges, the chairman of the U.S. Senate Banking Committee reported, highlighting what he identified as a “laundry list” of consumer abuses and compliance breakdowns.

The lender has been plagued by weaknesses in its governance and possibility-management tactics for nearly a ten years,

Sherrod Brown

(D., Ohio) stated in an open up letter despatched Tuesday to Wells Fargo Main Executive

Charles Scharf.

“It is obvious that Wells Fargo continue to has a prolonged way to go to deal with its governance and chance administration just before it need to be allowed to improve in size,” Sen. Brown wrote. “It is unacceptable that after many years of unsuccessful tries, nothing at all looks to have improved.”

A spokeswoman for Wells Fargo didn’t right away reply to a ask for for comment.

Sen. Brown highlighted a $7 million penalty the U.S. Securities and Trade Fee imposed on a Wells Fargo unit earlier this thirty day period for violations of anti-income-laundering regulations. Wells Fargo also was fined $250 million in September for its failure to deal with longstanding difficulties in its mortgage loan company.

Sen. Brown also pointed to a current information report in which a former personnel alleged that Wells Fargo done fake interviews of Black and woman position applicants to give a phony impact that it was making an attempt to diversify its workforce.

Wells Fargo’s failure to battle alleged lending discrimination and boost range amongst its staff raised queries about the bank’s skill to handle “myriad internal controls, hazard administration and standard governance challenges,” Sen. Brown said.

The senator reported he predicted Mr. Scharf to make a prepare to reform the bank’s danger administration and inner controls.

Mr. Scharf gained $24.5 million past yr, acquiring a 20% raise as the financial institution recovered from its pandemic slump. He took over as the company’s prime government in Oct 2019.

Publish to Richard Vanderford at richard.vanderford@wsj.com

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