*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).
Tax filing season is officially upon us, just as the IRS returns to full strength following the five-week government shutdown. But tax filers should expect some turbulence along the way, said Nicole Kaeding, director of federal projects at the Tax Foundation, a tax policy think tank.
These are the headlines you Need 2 Know for Monday, Jan. 28, 2019.
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.
President Trump announced on Friday that he reached a tentative deal with Democrats to reopen the government temporarily while the two sides continue to negotiate on border security. The continuing resolution would fund the government at current levels for three weeks, until Feb. 15. While Trump framed the deal as a victory, he was essentially agreeing to the same proposal that was offered by Democrats before the shutdown, which he had rejected.
President Trump's longtime ally Roger Stone was arrested Friday in connection with Robert Mueller's Russia probe. The FAA reported delays at several major airports across the U.S. because of an increase in employees taking sick leave at air traffic control centers. And Lois Backon, head of Corporate Partner Marketing for JPMorgan Chase, tells Cheddar how the bank partners with celebrities to share their financial planning tips.
Early Friday morning, FBI agents in riot gear arrested Roger Stone, a longtime Trump adviser, at his Florida home. He was charged with five counts of making false statements, one count of witness tampering and one count of obstruction, related to Special Counsel Robert Mueller's investigation into Russian meddling in the election.
These are the headlines you Need 2 Know for Friday, Jan. 25, 2019.
As the partial government shutdown enters its sixth week, it's up to moderates on both sides of the aisle to compromise on a solution to reopen the government, even if it means giving President Trump a partial victory on border funds, Sen. Mark Warner (D-Va.) told Cheddar. "Let me be clear, I'm willing to support more border security," the Virginia Democrat told Cheddar's J.D. Durkin on Wednesday. "But we ought to do it without these lives being held in hostage. Let's get the government open, even if it's for a few weeks, to let us negotiate."
It was an urgent warning from a group of professionals not known for a proclivity to scare the public. "In our risk averse industry, we cannot even calculate the level of risk currently at play, nor predict the point at which the entire system will break. It is unprecedented," the statement read in part. It was issued jointly on Wednesday, from the unions representing America's air-traffic controllers, pilots, and flight attendants.
These are the headlines you Need 2 Know for Thursday, Jan. 24, 2019.
