*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).
A public petition for the British government not to go through with Brexit gained so many signatures that the Parliament website crashed on Thursday.
There's a phenomenon on the internet called the "Streisand Effect," whereby a person's attempt to suppress information ends up widely publicizing that very same information. It was named after a situation an incident when Barbra Streisand tried to keep images of her Malibu mansion off the web and inadvertently drew massive amounts of attention to it. And it's why Devin Nunes' mom was trending on Twitter Tuesday morning.
The Democratic National Committee stands by its decision not to allow Fox News to host a Democratic primary debate in the 2020 presidential election, a party official told Cheddar on Thursday. "Our role at the DNC is to make sure we have a fair process and we do not believe Fox News can have a fair debate,” the DNC communications director Xochitl Hinojosa said.
In a presidential field that's growing more crowded by the day, Hawaii Rep. Tulsi Gabbard is looking to stand out by making foreign policy central to her campaign while her fellow Democratic candidates tussle over progressive moonshots like the Green New Deal or Medicare for All. At a campaign event in Concord, N.H., during the Presidents Day weekend, Cheddar's J.D. Durkin spoke with Gabbard, who said her agenda is based on her belief that the U.S. is "addicted" to regime-change wars.
These are the headlines you Need 2 Know for Tuesday, Feb. 19, 2019.
While New York City is mired in finger-pointing over the loss of Amazon's HQ2, Senator Cory Booker of New Jersey urges the company to reconsider the bid that Newark made.
According to House Ways and Means Committee Member Judy Chu, the GOP "made false claims" about the tax bill that passed in December of 2017 and is taking effect this tax season. "They said things like the American public would get on the average a $4,000 per person increase. Well, that is certainly not the case," Chu, a California Democrat, told Cheddar.
Bradley Tusk, the founder and CEO of Tusk Strategies and former campaign manager of Mayor Michael Bloomberg, knows exactly why Amazon's HQ2 plans in New York City fell apart. "It's not that we didn't get it because of some geopolitical economic trend or something out of our control. We didn't get it because our own politicians and Amazon themselves were too incompetent and too arrogant and too tone deaf to get it right," Tusk told Cheddar.
Amazon's blog post announcing it will pull the plug on its New York City headquarters is nothing but a bluff to bring politicians back to the negotiating table, said D.A. Davidson Analyst Tom Forte. "Absolutely Amazon's bluffing," Forte told Cheddar Friday.
From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
