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Warren Calls for Wells Fargo CEO Sloan to be Fired Following Revelations of Fraud

Saturday, February 23, 2019

 

Elizabeth Warren

United States Senator Elizabeth Warren is calling for Wells Fargo CEO Tim Sloan to be fired following revelations of fraud at the company.

This comes after a new report from Capitol Forum showed that starting in 2016, employees in the Wholesale Banking division of Wells Fargo "routinely falsified clients' signatures and otherwise doctored paperwork" in order to comply with a legal settlement with the Office of the Comptroller of the Currency (OCC) related to violations of anti-money laundering laws.

In a letter to the company, Warren wrote, "This latest report of Wells Fargo misconduct, if true, provides evidence the bank, under Mr. Sloan's leadership, failed to comply with anti-money laundering laws and then falsified documents to cover up non-compliance with a government order when the company got caught...The Federal Reserve should take no action to remove the growth cap until Wells Fargo replaces Mr. Sloan as CEO."

Fraud and Wells Fargo

In February 2018, the Federal Reserve Board of Governors imposed a growth restriction as part of a consent order that requires Wells Fargo to maintain total consolidated assets below the level it reported at the end of 2017. 

The settlement requires Wells Fargo to "ensure senior management 's ongoing effectiveness in managing the Firm 's activities and related risks and promoting strong risk management across the Firm" as a condition for the Fed to lift the growth cap.

Sloan led the Wholesale Bank during the money laundering violations that were the subject of the OCC settlement.

Wells Fargo and 38 Studios

In 2016, Wells Fargo and Barclays Capital had to pay Rhode Island more than $25.6 million in settlement fees relating to 38 Studios.

As GoLocalProv reported, this agreement coupled with the previous agreements pushed the amount recovered to more than $40 million of more than $88 million in losses incurred by the State of Rhode Island in its failed investment in Curt Schilling’s 38 Studios gaming company.

 

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