Last week, it was made known that Wells Fargo’s plan for reform was rejected by the federal government. Wells Fargo was required to pay back disgruntled customers and make dramatic changes to its governance and compliance controls.
In theory, the bank could have been subject to more fines and scrutiny by the government by missing deadlines, but it does not appear that will happen as a good faith effort was made.
The asset cap, however, that was implemented will not be lifted in 2018. Wells Fargo still has a ways to go in satisfying the government in terms of its checks and balances. The bank stated, “We work diligently to address feedback provided. This is an ongoing, iterative process.
Wells Fargo was not the only bank last week that has been in trouble recently and is continuing to face scrutiny. Deutsche Bank is now being called into question over its link to Danske Bank’s recent troubles.
- Look Before You Leap: Key Considerations for Moving to a Digital-Only Model
- Disruptions Past, Present and Future Raise the Existential Question: “What Are Banks For?”
- Study Links Credit Card Offer to Bank Choice
- What Banks Can Learn From the United Capital Acquisition
- What the Win-Win Partnership Between Apple and Goldman Sachs Means for Payments