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Senator Elizabeth Warren has urged the United States Federal Reserves to break up Wells Fargo following a series of financial scandals over the past few years.
Senator Warren Wants Wells Fargo Broken Up
Massachusetts Democrat Senator Elizabeth Warren has urged the United States Fed to break up Wells Fargo. She cited the numerous financial scandals the bank has been involved in over the past few years, stating that it is putting consumers at risk.
Warren made this known in a letter to Fed chair Jerome Powell. She stated that “I write to urge the Federal Reserve Board of Governors (the Fed) to take immediate action in response to the repeated, ongoing, and inexcusable failure of Wells Fargo & Company (Wells Fargo) to eliminate abusive and unlawful practices that have cost consumers hundreds of millions of dollars.”
She stated that the Fed could break up the bank by revoking its license to provide services as a financial holding company. Warren added that the Federal Reserve has the power to put the interest of the consumers first and must exercise that power.
Warren suggests that the Fed should break up Wells Fargo by separating its consumer-facing banking arm from the rest of its financial activities. Doing so would ensure the protection of consumers and their assets.
Wells Fargo didn’t respond directly to Warren’s letter. However, the bank issued a press release stating that it is making efforts to change its practices and ensures it meets the demands of the financial regulators. Wells Fargo maintained that it has introduced some changes over the past five years and will continue to improve its services.
WFC Up By Less Than 1%
The shares of Wells Fargo are up by less than 1% today, despite the bank coming under fire from Senator Warren. WFC has been up by 0.68% since the US market opened a few hours ago. The stock is currently trading at $46.
Year-to-date, WFC is up by over 50%. The stock started trading at $29 per share at the beginning of the year, and it is now trading at $46 per share.
This article was originally posted on FX Empire