Yellen said in September congressional testimony that the central bank had initiated “a broad-based review” of compliance regimes and governance at the largest banks. “I think it is very important that senior management be held accountable,” she said at that time.
The Fed has the authority to remove bank board members, but only after presenting a case of how an individual’s actions have been unsafe for the organization as a whole. Using that process for nearly an entire board would represent a challenging legal undertaking by Fed staff.
U.S. Senator Elizabeth Warren renewed her attack on Wells Fargo & Co., urging the Federal Reserve to remove the 12 directors who were on the board when bank employees set up legions of fake customer accounts.
Wells Fargo shares advanced 1 percent to $54.41 at 12:49 p.m. in New York, paring this year’s decline to 1.3 percent.
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