Wells Fargo's Growth Ban Won't End Until Vote of Full Fed Board
- Fed Chair Powell shifts original plan delegating move to staff
- Decision announced in letter after push from Senator Warren
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Unprecedented growth restrictions imposed on Wells Fargo & Co. will stay in place until the Federal Reserve’s board agrees that the bank has made enough progress in fixing flaws that led to customer-abuse scandals over the past two years, Fed Chairman Jerome Powell said in a letter to Senator Elizabeth Warren.
In a letter to Warren dated May 10, Powell agreed to deviate from the terms of the regulator’s February order that said that the limits would be lifted once Wells Fargo satisfied the Federal Reserve Bank of San Francisco and the Fed staff’s head of supervision. The senator had pressed the central bank chief to make that change at a March hearing and in an April letter.