Senator Elizabeth Warren, Democrat of Massachusetts, questions Jerome Powell, President of the US Federal Reserve Candidate for US President Donald Trump, right, at a Senate Banking Committee confirmation hearing in Washington, DC, U.S., Tuesday, November 28, 2017.ew Harrer | Bloomberg | Images
Sen. Elizabeth "Warren on Tuesday urged the Federal Reserve to break up Wells "Fargo , arguing from a series of scandals at the financial titan puts consumers at risk.
In a " letter to the president of the Fed Jerome "Powell , Massachusetts Democrat has called on the central bank's board of governors to use their authority to separate the Wells Fargo banking unit from its financial services business. She said the Fed could dismantle Wells Fargo by revoking its license to operate as a financial holding company.
"The Fed has the power to put consumers first, and ite must use it, "Warren wrote." By invoking its full authority to protect consumers and the financial system and demanding that Wells Fargo separate its consumer banking arm from the rest of its financial operations, the Fed can ensure that Wells Fargo faces the appropriate consequences of its longstanding ungovernable behavior. "
Although Wells Fargo did not respond directly to Warren on Tuesday, it issued a press release highlighting efforts to change its practices and respond to requests from regulators. The company said "We are a different bank today than we were five years ago because we have made progress.
The financial giant has highlighted measures to
Wells Fargo shares have lightement increased on Tuesday.
Washington has stepped up its scrutiny of Wells Fargo's practices since the 2016 revelation that the company has created millions of bank accounts in the names of real people without their knowledge or consent. Wells Fargo has paid more than $ 4 billion in penalties since the scandal came to light.
The Company The problems didn't end there. Last week the Office of the Comptroller of the Currency "hit Wells Fargo fined $ 250 million , claiming he violated a 2018 consent order, a move that requires financial institutions to remedy violations of regulatory standards.
Despite this, Wells Fargo said last week that a 2016 Consumer Financial Protection Bureau consent order related to the fake accounts scandal has expired. Cela could signal a easing of government pressure on the company.
The Fed capped Wells Fargo's assets in 2018.
Warren cited the scandal with false accounts and other practices in Wells Fargo's insurance and wealth management business, claiming that the company is a "lifelong repeat offender" with an "inability to meet regulatory requirements and treat its consumers honestly and fairly.
- CNBC's Hugh Son contributed to this report
Subscribe to CNBC on YouTube. articlebody>