Salem Radio Network News Sunday, October 17, 2021

Business

Fed’s Powell says Wells Fargo asset cap to stay in place until problems fixed

(Reuters) – Federal Reserve Chair Jerome Powell said on Wednesday that the Fed is closely monitoring efforts by Wells Fargo & Co to fix its problems, and that it would take appropriate actions if the bank failed to do so.

In 2018, the Federal Reserve ordered Wells Fargo to keep its assets below $1.95 trillion, until it had improved its governance and risk controls following sales practice scandals. That constrains Wells Fargo’s ability to make new loans.

Powell said on Wednesday that Wells’ asset cap would stay in place until the firm has comprehensively fixed its problems.

“We’re not going to remove that asset cap until that’s done,” he said.

(Reporting by Lindsay Dunsmuir and Ann Saphir, writing by Megan Davies; editing by Diane Craft)

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