Wells Fargo Becomes First Bank To Face Sanctions For Failing Too-Big-To-Fail Test
A Wells Fargo Bank is shown in Charlotte, North Carolina, on Sept. 26. As a result, Wells Fargo is banned from creating new international bank operations or acquiring non-banks until it shows regulators it can be unwound safely. In their statement informing Wells Fargo that it had failed the living will process, they say the bank failed to address concerns that it was too complex and failed to lay out clear actions the company could take to simplify its organization and best structure itself so it wouldn’t need a bailout if it fails. Just three months ago, Wells Fargo was forced to pay $185 million for scamming customers by opening up more than 1.5 million sham checking accounts and applying for 565,000 credit cards using customers’ names and accounts. Wells Fargo said Tuesday evening in a release that it “is committed to strengthening and enhancing its resolution planning processes.” The bank said it believes it can resolve the problems with its living will on its third try.
Discover Related
"A very dangerous precedent": Debanking dispute politicizes financial system
What Trump’s public scolding of Bank of America’s CEO was really about
Wells Fargo, Chase, Bank of America sued over alleged unchecked fraud on Zelle app
US Fed sues JPMorgan, Wells Fargo, BofA over Zelle payment network fraud
US Fed sues JPMorgan, Wells Fargo, BofA over Zelle payment network fraud
Amid intimidation claims, Wells Fargo investigators vote to unionize
Union drive at Wells Fargo heats up as employees allege intimidation tactics
American bank Wells Fargo fires a dozen staffers for faking work activity
How bots and short sellers brought down First Republic Bank
CEOs of the nation’s biggest banks warn that new regulations could harm the economy
CEOs of the nation’s biggest banks warn that new regulations could harm the economy
Bank stocks continue to fall following First Republic demise
Bank stocks continue to fall following First Republic demise
First Republic collapses: Are other US banks at risk?
'First Republic Bank was severely mismanaged, would be held accountable': White House
The three banks that have failed this year are bigger than the 25 that crumbled in 2008
US Regulators Seize Assets Of First Republic Bank, To Be Sold To JPMorgan
Opinion: It’s not just First Republic that failed. It’s the whole banking system
Biden says bank system ‘safe’ after JPMorgan buys First Republic
Silicon Valley Bank: US Fed calls for tougher bank rules after SVB collapse
Fed Admits to Failures in Oversight of Silicon Valley Bank Collapse in New Report
Fed blames itself for Silicon Valley Bank collapse
US regulators vow stiffer oversight after SVB, Signature failures
Fed autopsy on SVB faults bank’s management — and its own oversight
First Republic may not survive, even after two multibillion-dollar bailouts