Fed imposes new penalties on Wells Fargo

The Federal Reserve has imposed unusually harsh penalties on Wells Fargo, punishing it for years of misconduct and barring it from future growth until the San Francisco bank fixes its problems.

The central bank blasted Wells Fargo’s board for failing to oversee the bank, and it announced that the company will replace four members of its 16-person board by the end of the year.

The Fed’s punishment, a forceful intervention by the government into the affairs of a large company, means that one of the country’s largest and most powerful financial institutions will be unable to keep pace with its fast-growing rivals.

By Emily Flitter, Binyamin Appelbaum and Stacy Cowley

http://www.sfgate.com/business/article/Fed-imposes-new-penalties-on-Wells-Fargo-12547792.php