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Wells Fargo Banned From Growing by Fed After Repeat Scandals

Feb. 3, 2018, 12:34 AM

Wells Fargo & Co. is banned from getting bigger until it can resolve a pattern of consumer abuses and compliance problems, in what Federal Reserve officials called an unprecedented sanction of one of the largest U.S. banks.

Four members of the company’s board are to be replaced by the end of the year, the Fed said Friday. And until the San Francisco-based lender addresses shortcomings including weak internal oversight, it can’t take any action that would increase its total assets beyond their size at the end of 2017, unless it gets advance permission from the regulator.

“The enforcement action we ...