Fed chief says Wells Fargo needs to make 'significant' reforms before growth cap is lifted
The new chief of the Federal Reserve said Thursday that a cap it placed on the growth of Wells Fargo & Co. after widespread consumer abuses would not be easily lifted - but the bank would not have to fully implement reform plans before it was removed.
Fed Chairman Jerome H. Powell sparred over the matter with Sen. Elizabeth Warren (D-Mass.), one of the leading critics of Wells Fargo after its creation of millions of unauthorized accounts and the disclosure of other questionable practices.
"Growth restriction is your really big stick here, and I hope that you won't consider lifting it just because Wells makes some marginal progress," Warren told Powell at his first appearance before the Senate Banking Committee since taking over as Fed chairman on Feb.
