HFSC Chair Maxine Waters Launches Investigation Into Wells Fargo

Feb 26, 2020Congressional Legislation, News

In response to the ongoing issues  concerning scandal-plagued Wells Fargo, the House Financial Services Committee (HFSC) recently announced the opening of an investigation into the company’s compliance with five regulatory orders. In March 2020, under the leadership of Chairwoman Maxine Waters (D-Calif.), the HFSC will share the results of the investigation and hold three hearings into Wells Fargo’s accountability.

The hearings throughout March will examine the company CEO’s perspectives, the role of the Board of Directors, and the effect of the bank’s “toxic” environment for employees.

Last week, a $3 billion settlement was reached between Wells Fargo, the U.S. Department of Justice, and the U.S. Securities and Exchange Commission. In her statement about the settlement, Waters said that “this fine which is coupled with a deferred prosecution agreement, is the cost of doing business for a bank with $1.9 trillion in assets. Wells Fargo must be fully accountable to the public for its crimes.”

In a press release announcing the investigation and hearings, Chairwoman Waters also outlined her long history of looking into Wells Fargo. In March 2019, she held a hearing with the company’s President Timothy Sloan to examine their “pattern of consumer abuses.” Upon hearing about Sloan’s $2 million bonus, she pushed for his removal from the bank, and he resigned.

In February 2018, Chairwoman Waters supported the Federal Reserve’s announcement to restrict Wells Fargo’s growth until it improved its governance. She has also previously issued a Democratic staff report “detailing a pattern of abusive business practices” and requested hearings to review their “ongoing violations of consumer rights.”

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