*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).
With less than two weeks until election day, a California Democrat, Harley Rouda, has gotten a $4.3 million boost from Michael Bloomberg in his bid to take down 30-year incumbent Republican Congressman Rohrabacher. Bloomberg's Independence USA PAC disclosed the spending last week, which went to advertising targeting the Republican. Rouda said Bloomberg's ad campaign will help bring the issue of climate change to the forefront of voters' minds in the coastal Orange County district.
These are the headlines you Need 2 Know.
Los Angeles Mayor Eric Garcetti mulled a 2020 presidential run in an interview on Cheddar Monday, saying the cure to America's "odious" political sickness may be found in city hall. "I hope that even if I don't run, that mayors will think about jumping in," Garcetti said, "because I think we could cut through a lot of that partisanship right now."
Attending a Trump rally can be daunting for any self-proclaimed liberal ー even more so if your last name is Pelosi. But an experience with her political opposites left Alexandra Pelosi, the documentarian and youngest daughter of House Minority Leader Nancy Pelosi, feeling hopeful. "We all need to burst out of our own bubbles and see what the other people are thinking," Pelosi said Monday in an interview on Cheddar.
Gab, an online haven for white supremacists, neo-Nazis, and the alt-right, is facing an increasingly uncertain future. Over the weekend, Gab was linked to Robert Bowers, who is accused of open-firing in a Pittsburgh, Pa., synagogue, killing 11 people and wounding six others. Bowers had a verified account on Gab and used the social network to post hateful, anti-Semitic messages up until the morning of the shooting.
These are the headlines you Need 2 Know.
After a week of political finger-pointing and frayed national nerves ahead of a major election, a Florida man is in custody on federal charges that he sent at least 13 live explosive devices to prominent former and current Democratic officials, a news organization, a Hollywood actor, and liberal donors.
Megyn Kelly's exit negotiations with NBC were underway on Friday, as the network announced that the third hour of valuable morning show real estate she anchored is canceled. "Essentially and effectively she is out," Tony Maglio, TV editor at TheWrap, said Friday in an interview with Cheddar. "It's just a matter of all the legalese and what she'll walk away with."
The multi-year Women in the Workplace report, produced by Sheryl Sandberg's Lean In organization with McKinsey & Company, reveals a stubborn problem of gender diversity in corporate America. As Rachel Thomas, the president of Lean In, explained to ChedHER on Friday, that companies are clearly interested in closing the gender gap ー but they haven't done enough to make it happen yet.
Federal authorities have arrested Cesar Sayoc, Jr. in connection with a dozen packages containing likely explosives. Sayoc has a Florida address and has a criminal record, according to the Broward County Sheriff.
Two additional suspicious packages sent to prominent Democrats were intercepted earlier Friday, only hours before the manhunt appeared to close in on a suspect for the attempted mail bombings now being described as a domestic terrorism.
