The Federal Reserve ordered Wells Fargo on Friday to halt its growth until it fixes systemic compliance problems that led to consumer abuses, in an unprecedented move that saw the lender's shares fell sharply in after hours trading.
The Federal Reserve Board said in a statement that it would restrict the growth of Wells Fargo, the country's third-largest lender with $1.95 trillion in assets as of the end of 2017, "until it sufficiently improves its governance and controls."
The bank will also replace three current board members by April and a fourth board member by the end of the year, the Fed said, without naming who they should be.
https://www.newsmax.com/newsfront/fed-wells-fargo-compliance/2018/02/02/id/841225/
A wondering if the Fed actually has this authority it is claiming, to limit a bank and to fire directors of its board.
Seems the answer is No.
