Warren Asks Fed to Break Up Wells Fargo After Regulatory Hit
- Senator asks Fed to revoke financial holding company status
- Wells Fargo was handed fresh regulatory action this month
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U.S. Senator Elizabeth Warren urged the Federal Reserve to force Wells Fargo & Co. to separate its traditional banking and Wall Street businesses, after the lender was handed fresh regulatory action and a $250 million fine this month.
In a letter to Federal Reserve Chair Jerome Powell, Warren called on the Fed to revoke Wells Fargo’s status as a financial holding company in order to effect a separation. The Fed should order the company to develop a plan to ensure its customers are protected through the transition, the Massachusetts Democrat said.