WASHINGTON (Reuters) – U.S. Senator Elizabeth Warren said on Thursday the Federal Reserve should not allow Wells Fargo & Co (WFC.N) to grow in size until the bank replaces Chief Executive Officer Tim Sloan.
FILE PHOTO: U.S. Senator Elizabeth Warren (D-MA) arrives for a procedural vote on the confirmation of U.S. Supreme Court nominee Brett Kavanaugh on Capitol Hill in Washington, U.S., October 5, 2018. REUTERS/Yuri Gripas
In a letter to Fed Chairman Jerome Powell, Warren said Sloan, a 30-year veteran of Wells, is “deeply implicated” in prior bank misconduct, and it is untenable for him to remain at the bank as the Fed seeks a drastic overhaul of its operations.
“The Wells Fargo Board of Directors cannot plausibly claim that it is ‘ensuring senior management’s ongoing effectiveness in managing the firm’s activities’ while retaining a CEO that helped oversee this much misconduct,” she wrote.
Reporting by Pete Schroeder; Editing by Jeffrey Benkoe