Sen. Elizabeth Warren (D-Mass.) is requesting that the Federal Reserve Board of Governors hold a formal vote on whether to accept a plan from Wells Fargo & Co. to address consumer abuses.
In a letter to Fed Chairman Jerome H. Powell released Wednesday, Warren said it was important for Senate-confirmed central bank governors to vote on enforcement decisions so Congress and the public can hold them accountable.
In February, the Fed board voted unanimously to order Wells Fargo to cap its growth and improve its corporate governance in response to the bank’s unauthorized accounts scandal and other problems.
“Given the breadth of the wrongdoing at Wells Fargo and the enormous number of consumers affected, the Fed’s governors — not its staff — should be responsible for determining whether Wells Fargo is complying with the consent order,” Warren wrote in the letter she sent Powell on Tuesday.
“The Fed’s consent order sent a powerful message to Wells Fargo and other big banks that there could be real consequences … if they break the law,” Warren wrote. “The public deserves to see that the [Fed] board is strictly enforcing its order.”