*By Bridgette Webb* Sen. Elizabeth Warren (D-MA) wants regulators to exert serious pressure on Wells Fargo ー pressure she hopes will result in the resignation of CEO Tim Sloan. But it's unclear whether the Senator's coaxing will have any real effect, said Pete Schroeder, a financial correspondent at Reuters. "On paper, Warren can't make the Fed do anything," Schroeder said Friday in an interview on Cheddar. The central bank is an independent regulator and technically can't make Wells Fargo ($WFC) do anything either, he pointed out. And the board "so far has been supportive of Tim Sloan." "What's interesting with this new letter is that Warren is trying to enlist the Fed in her effort. Her argument is that you can't overhaul the bank's policies and keep Tim Sloan, who has been at the bank for 30 years," Schroeder said. Wells first came under fire in 2016 when news surfaced that employees secretly created millions of unauthorized bank and credit card accounts without customers' knowledge. The phony accounts charged customers with unjustified fees and allowed Wells employees to boost their sales figures and earn more in commissions. The massive scandal resulted in the ouster of then-CEO John Stumpf and the promotion of Sloan, who was the bank's president at the time. He'd also previously served as chief operating officer and CFO. But under his leadership, issues have continued to rock the bank, including the news that it improperly repossessed military service members’ cars. In a letter to the Federal Reserve on Thursday, Warren argued that Sloan is profoundly implicated in the bank's misconduct. "\[She's\] really putting a lot of pressure on the bank and really pushing for \[it\] to really overhaul the organization, basically saying it's clear that they are not running the bank in anything close to an appropriate fashion." According to Schroeder, "Warren has been on the bank from the first scandal." In February, the Fed made the unprecedented move of ordering Wells Fargo to keep its assets below $2 trillion, saying the company had prioritized growth over compliance with regulation. Warren wants to keep that cap on business in place until Sloan is essentially forced to resign. For full interview [click here](https://cheddar.com/videos/why-sen-warren-cant-force-the-fed-to-remove-wells-fargo-ceo).

Share:
More In Politics
What To Do With America's Largest Confederate Monument?
Statues commemorating the Confederacy are being torn down across America as a result of racial unrest following the murder of George Floyd in Minneapolis. But the largest monument in the country has been left out of the conversation: Stone Mountain monument in Georgia. The 42-foot-deep, 76-by-158 foot carving of Confederate President Jefferson Davis, and Generals Robert E. Lee and Stonewall Jackson sits on the face of the world’s largest piece of exposed granite. Removing it could require bitter political debate and a year-long demolition. But for most, the racist history it represents is too hard to ignore.
Fed Sees Dim Economic Outlook as Virus Squeezes Economy
The Federal Reserve expressed concern Wednesday that the viral outbreak will act as a drag on the economy and hiring in the coming months and said it plans to keep its benchmark short-term interest rate pegged near zero.
Barr Condemns 'Rioters' in Much-Anticipated House Testimony
Attorney General William Barr is defending the aggressive federal law enforcement response to civil unrest in America, saying “violent rioters and anarchists have hijacked legitimate protests” sparked by George Floyd’s death at the hands of Minneapolis police.
Load More