*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).
If you’re looking to make a move in 2019, you could do worse than some of the cities below. Each one is using technology ー IoT, machine learning, data analysis, autonomy, A.I. ー to remake the way its citizens interact with their surroundings. But a smart city is more than just innovative technology, as Mike Barlow and Cornelia Levy-Bencheton, authors of "Smart Cities, Smart Future," told Cheddar. It's about improving lives in concrete, everyday ways.
These are the headlines you Need 2 Know for Tuesday, Dec. 18, 2018.
As 2020 approaches, one question is dominating the Democratic Party: Who can defeat President Trump? According to Jeff Weaver, the campaign manager of Bernie Sanders' 2016 bid for the White House, Americans want someone new. And that "new" voice is still his old boss.
Not only has New York Gov. Andrew Cuomo reversed his stance on marijuana, but he's also expediting his timeline for legalization. According to Joseph Spector, the Albany bureau chief for USA Today, the Cuomo committed to an accelerated schedule on Monday when he charted the agenda for his first 100 days in office.
These are the headlines you Need 2 Know for Monday, Dec. 17, 2018.
Federal prosecutors are investigating whether foreigners illegally funneled money to President Trump's inaugural committee to buy influence over American policy. Bomb threats emailed to multiple locations across the country deemed non-credible by the FBI. For the first time ever, the number of streaming shows has surpassed the number of basic cable and broadcast shows. From now until December 31st, users of the dating app Hinge can get a buy-one, get-one free meal at Chipotle to enjoy with their date.
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.
As Cheddar reflects on 2018, we are profiling the most innovative, flamboyant, and often-controversial entrepreneurs and corporate leaders who delivered the year's most memorable moments in business. Cheddar's Biggest Loser Award Goes to Mark Zuckerberg and Sheryl Sandberg.
These are the headlines you Need 2 Know for Friday, Dec. 14, 2018.
The arrest of Huawei CFO Meng Wanzhou was an "enforcement action, not a trade-related action," according to Commerce Secretary Wilbur Ross. Ross told Cheddar's Megan Pratz that the arrest of Meng in Vancouver was a response to her flouting of sanctions ー and not a retaliatory strike or warning shot against a major Chinese telecom corporation.
