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Wells Fargo: Elizabeth Warren calls for the big bank to be broken up


In a letter to the Federal Reserve, the Democrat urges the fourth largest bank in the United States to give up its investment activities. Otherwise the »deficits in risk management« could not be remedied.

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Warren performing in California (archive image)



This proposal from Massachusetts is unlikely to please the big bank Wells Fargo: In a letter to the US Federal Reserve, the Democratic MP Elizabeth Warren calls for the big bank to be broken up.

The Democrat demands that the universal banking business with customers' savings be separated from the investment bank on Wall Street, reports the New York Times.

The bank must give up its investment banking activities on Wall Street, said Warren.

This is the only way to ensure that "their management team devotes all their attention to remedying the numerous chronic deficits in risk management."

It is not Elizabeth Warren's first high-profile request.

The democrat is assigned to the left spectrum of her party and has caused controversy in the past with her call for a higher tax for the super-rich.

Fake accounts, fines, special requirements

The Fed acknowledged receipt of the letter, but did not comment on the chances of success of the request.

The bank itself apparently did not initially want to comment on Warren's letter.

Wells Fargo is considered the fourth largest bank in the United States.

The money house had already admitted in 2016 that it had kept bogus accounts for years that could not be assigned to real customers.

Last year, the bank agreed to a $ 3 billion settlement with the Justice Department and the Securities and Exchange Commission.

Wells Fargo's business is still subject to special restrictions.

The shareholders of the institute are now apparently calm about the Democrat's request: The price of Wells Fargo shares rose slightly.


Source: spiegel

All business articles on 2021-09-14

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