*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).
Young Americans face a double burden from crushing student debt and the ballooned federal deficit that is the result of President Trump's tax cut, House Speaker Nancy Pelosi told Cheddar's J.D. Durkin in an interview that aired Wednesday. Pelosi called the economic position many millennials find themselves in, even as the economy remains strong, "unconscionable." "Republicans foisted onto future generations [an] economy that is unfair, that is not really lending itself to growth in a strong, predictable, confident, certain way," Pelosi said.
The newly appointed vice chairman of the House Foreign Affairs Committee, Rep. Joaquin Castro (D-Tex.), said he is "absolutely" concerned that Chinese telecommunication giant Huawei poses a threat to national security in an interview on Cheddar Tuesday.
Democratic Rep. Earl Blumenauer of Oregon is pushing forward for marijuana reform, introducing the aptly named House Resolution 420 to regulate marijuana much like alcohol was regulated post-Prohibition. "Ultimately we're going to be moving in that direction, allowing the states to be able to set up a regulatory system that meets their needs ー have their own approach in terms of taxation and distribution, just like alcohol," Blumenauer told Cheddar Tuesday. "
The cannabis business is budding across the United States, and one company is hoping to take hemp mainstream. Socati just announced a new $33 million round of funding. The company's CEO Josh Epstein talked to Cheddar about how that investment will help Socati expand is business.
President Trump's "Make America Great Again" cap is more than just a hat, it's a "symbol of us vs. them," Washington Post fashion editor Robin Givhan told Cheddar. Givhan penned a column last week about what the hat has come to mean in the years since it burst on the scene as a campaign accessory for Trump's 2016 presidential bid. The hat, she wrote, has become "a symbol of us vs. them, of exclusion and suspicion, of garrulous narcissism, of white male privilege, of violence and hate."
Between changes in the tax code and the government shutdown, H&R Block knows this year's tax season is likely to be stressful for many. That's why the company's introducing a slate of tools, some artificial intelligence-enabled, to help make it easier and more transparent to file. "This year we are introducing upfront, transparent pricing, so every single consumer will know what's it going to cost before I start," H&R Block CEO Jeff Jones told Cheddar.
These are the headlines you Need 2 Know for Tuesday, Jan. 29, 2019.
The battle of the billionaires may be heating up ahead of the 2020 presidential race, as former mayor and media mogul Michael Bloomberg took a swipe at ex-Starbucks CEO Howard Schultz after he announced a potential run for president as an independent during an interview on "60 Minutes" Sunday. The two billionaires are looking in part to capitalize on their corporate success to gain an edge against President Trump, who leveraged his business career to gain the presidency. "Anything is really possible at this point, and you don't want to ignore a white billionaire announcing a candidacy for president," Julia Manchester, reporter at The Hill, told Cheddar Monday. "We saw it happen in 2015 and \[Trump]\ won."
The U.S. Treasury on Monday announced sanctions against Venezuela's state-owned oil firm in an effort to undermine incumbent president Nicolás Maduro and reinforce support for interim president Juan Guaidó. Brett Bruen, a former diplomat and director of global engagement under President Obama, called the administration's decision a "rare bright spot" in Trump's foreign policy. "The Trump administration is holding firm to defend democracy, they are standing up for human rights, they are standing up for the rule of law," Bruen told Cheddar Monday.
Trump's political calculus to appeal to his base ー an older, whiter, more conservative demographic ー is coming at the expense of his popularity among millennials, said Kristen Soltis Anderson, a Republican pollster and author of "The Selfie Vote: Where Millennials Are Leading America." That poses a problem for the GOP as it seeks to broaden its tent in anticipation of a future when Donald Trump is not on the ballot.
