Wells Fargo Instructed by Senator to Resolve Its Danger-Administration Tactics

Wells Fargo CEO Charles Scharf acquired $24.5 million very last calendar year, up 20% from 2020.



Picture:

Andrew Harrer/Bloomberg Information

Wells Fargo

& Co. will have to fix its governance and possibility-management concerns, the chairman of the U.S. Senate Banking Committee explained, highlighting what he called a “laundry list” of customer abuses and compliance breakdowns.

The lender has been plagued by weaknesses in its governance and risk-administration methods for just about a ten years,

Sherrod Brown

(D., Ohio) mentioned in an open up letter despatched Tuesday to Wells Fargo Chief Govt

Charles Scharf.

“It is obvious that Wells Fargo still has a long way to go to deal with its governance and chance administration right before it should really be authorized to grow in size,” Sen. Brown wrote. “It is unacceptable that soon after a long time of unsuccessful attempts, nothing at all appears to be to have enhanced.”

A spokeswoman for Wells Fargo did not immediately respond to a request for comment.

Sen. Brown highlighted a $7 million penalty the U.S. Securities and Trade Fee imposed on a Wells Fargo unit earlier this month for violations of anti-funds-laundering policies. Wells Fargo also was fined $250 million in September for its failure to deal with longstanding complications in its mortgage company.

Sen. Brown also pointed to a modern information report in which a previous worker alleged that Wells Fargo done pretend interviews of Black and female work candidates to give a fake impression that it was making an attempt to diversify its workforce.

Wells Fargo’s failure to combat alleged lending discrimination and enhance range among the its staff members lifted issues about the bank’s capacity to deal with “myriad interior controls, threat management and general governance troubles,” Sen. Brown claimed.

The senator reported he predicted Mr. Scharf to make a system to reform the bank’s risk management and inner controls.

Mr. Scharf earned $24.5 million final yr, receiving a 20% elevate as the financial institution recovered from its pandemic slump. He took above as the company’s prime government in Oct 2019.

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

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