Responding To Widespread Consumer Abuses And Compliance Breakdowns By Wells Fargo, Federal Reserve Restricts Wells' Growth Until Firm Improves Governance And Controls. Concurrent With Fed Action, Wells To Replace Three Directors By April, One By Year End

Responding to recent and widespread consumer abuses and other compliance breakdowns by Wells Fargo, the Federal Reserve Board on Friday announced that it would restrict the growth of the firm until it sufficiently improves its governance and controls. Concurrently with the Board's action, Wells Fargo will replace three current board members by April and a fourth board member by the end of the year.