SEVERE WX : Winter Weather Advisory View Alerts

Wells Fargo stock tumbles after harsh penalty from Fed

Wells Fargo stock is tumbling after the Federal Reserve's unprecedented punishment of the bank.The stock was d...

Posted: Feb 5, 2018 1:41 PM
Updated: Feb 5, 2018 1:41 PM

Wells Fargo stock is tumbling after the Federal Reserve's unprecedented punishment of the bank.

The stock was down 7% before the opening bell on Monday.

The Fed won't allow Wells to grow any larger than it was at the end of last year until it cleans up its act. The central bank cited "widespread consumer abuses," including the creation of millions of fake customer accounts.

It's the first time the Fed has put a limit on a financial institution's entire assets, according to a Fed official. The penalty was announced after the markets closed on Friday.

"We cannot tolerate pervasive and persistent misconduct at any bank," outgoing Fed chair Janet Yellen said in a statement Friday, her last day on the job.

Related: The Fed drops the hammer on Wells Fargo

Last year, Wells Fargo admitted that its workers created as many as 3.5 million fake bank accounts dating back to 2009. The bank has also said it forced up to 570,000 customers to buy auto insurance they didn't need.

Wells Fargo has faced lawsuits, federal and state investigations, fines, and a congressional grilling as the scope of the scandal widens. Workers say they were fired or retaliated against for speaking up about misbehavior.

Related: Wells Fargo's 17-month nightmare

Wells Fargo controlled $2 trillion in assets at the end of 2017, more money than any bank in the United States besides JPMorgan Chase, according to Fed data.

Wells Fargo also agreed to remove three people from the board of directors by April and a fourth by the end of the year.

The bank agreed to the Fed's conditions under a consent decree. In a statement, Wells Fargo said it is "confident" it can meet the Fed's requirements.

-- CNNMoney's Donna Borak, Danielle Wiener-Bronner and Jackie Wattles contributed to this report.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 137600

Reported Deaths: 1877
CountyCasesDeaths
Multnomah29040464
Washington19216179
Marion16668247
Clackamas11989141
Lane8724113
Jackson712295
Umatilla697673
Deschutes517140
Yamhill329448
Malheur319855
Linn319449
Polk256340
Klamath252446
Josephine182636
Benton181714
Douglas175944
Jefferson173425
Union114617
Wasco111723
Columbia107518
Lincoln102717
Coos98315
Hood River97621
Morrow96310
Clatsop7075
Crook65213
Baker5825
Tillamook3692
Curry3245
Lake2485
Grant2171
Harney1806
Wallowa993
Gilliam531
Sherman470
Wheeler201
Unassigned00
Eugene
Cloudy
38° wxIcon
Hi: 41° Lo: 33°
Feels Like: 33°
Corvallis
Cloudy
37° wxIcon
Hi: 39° Lo: 35°
Feels Like: 30°
Roseburg
Cloudy
37° wxIcon
Hi: 40° Lo: 31°
Feels Like: 37°
North Bend
Cloudy
43° wxIcon
Hi: 44° Lo: 37°
Feels Like: 40°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events