Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Fed's Wells Fargo punishment sets precedent for harsher era

“The harsh Fed consent order is rare and a strong sign of regulators’ frustration about the very wide swath of areas where Wells has had issues,” JPMorgan Chase analysts led by Vivek Juneja said Monday in a note to investors.

The Fed has at times put a bank’s growth in check, such as in 2005 when it told Citigroup that it was expected to not undertake “significant expansion” until it addressed the issues that gave rise to numerous compliance failures.

During former Chair Janet Yellen’s tenure it changed course, routinely banning bankers from the industry who had been accused of misconduct and joining other regulators in imposing billions of dollars in fines on Wall Street firms.

Former Carlyle Group executive Randal Quarles is now responsible for the Fed’s oversight of large banks, and last month the Trump appointee laid out his road map for easing aspects of the Dodd-Frank Act and other rules.

Quarles said his plans include altering regulations that have forced lenders to hold bigger capital cushions, revising Volcker Rule trading restrictions and making annual stress tests that examine whether firms can endure another economic meltdown less burdensome.


  • Wells Fargo shares plunge after Federal Reserve sanctions restrict the bank's ...USA TODAY
  • Stocks slip further as banks sink; Wells Fargo plungesVirginian-Pilot
  • A popular tactic that investors rush to when stocks tank is being testedBusiness Insider
  • After a bad week, US stock indexes slip again, led by banksMiami Herald
  • Wells Fargo plunges after being hit with a rare growth ban by the Fed (WFC)Markets Insider
  • Wells Fargo's 17-month nightmareWDIV ClickOnDetroit
  • Wells Fargo shares tank after shock sanction by FedCBS News
  • MARKET SNAPSHOT: Stocks Trim Losses; Wells Fargo Weighs On Financial
  • Wells Fargo Must Be Better Before It Gets BiggerBloomberg

This post first appeared on The 5th News, please read the originial post: here

Share the post

Fed's Wells Fargo punishment sets precedent for harsher era


Subscribe to The 5th News

Get updates delivered right to your inbox!

Thank you for your subscription