On September 13, 2021, Senator Elizabeth Warren sent FED Chair Jerome Powell a letter [PDF]. In the letter she wrote "Un

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On September 13, 2021, Senator Elizabeth Warren sent FED
Chair Jerome Powell a letter [PDF].
In the letter she wrote "Under Janet Yellen's leadership, the
Fed placed Wells Fargo under an asset cap in 2018 due to its
'widespread consumer abuses and other compliance
breakdowns.' In the more than three years since then, numerous
additional revelations have surface about Wells Fargo's continued
unethical and anti-consumer conduct. These new revelations have
once again made clear that continuing to allow this giant bank with
a broken culture to conduct business in its current form poses
substantial risks to consumers and the financial
system.” Senator Warren goes on to ask that the
Fed revoke Wells Fargo's status as a financial holding
company. The action would require Wells Fargo to separate its
consumer bank subsidiary from its other financial activities.
Wells Fargo is an enormous financial services company with $1.9
trillion in assets. It serves 1 in 3 U.S. households and 10%
of U.S. small business.
In Well's Fargo's reply, it cites progress achieved under
the new CEO, Charles Scharf, including:
Instructions
The Fed continues to maintain that Wells Fargo has not done
enough to rein in the incentive failures that revealed the frailty
of its corporate governance. We have seen that several of the
largest conglomerates in the United States have decided that it is
time to divide their agglomerated groups into smaller units for
focus and function. Johnson & Johnson will separate its
consumer products division and its pharmaceutical division. GE
will divide into three units: aviation, energy, and
healthcare. Is it time for Wells Fargo to separate its
consumer banking business from its other enterprises?
Address the following in your discussion
post: