Warren Criticizes Fed Ahead of Wells Fargo Decision

Senator Elizabeth Warren (D-Mass.) expressed her discontent over the Federal Reserve’s choice to lift a significant penalty against Wells Fargo during an interview on CNBC. This decision to remove the asset cap came ahead of the Fed’s official announcement.

Warren specifically criticized the Fed for its 2018 move, when it lifted restrictions that had been placed on Wells Fargo due to a series of sales scandals. She has been vocal about the need for the Fed to produce a report detailing Wells Fargo’s actions since then.

As a result of various scandals, the Fed had previously restricted Wells Fargo’s total assets to under $1.95 trillion and imposed hefty fines from both federal and state authorities, marking this as an unprecedented action.

In her recent remarks, Warren called for the Fed to share its unaltered report with the Senate Banking Committee. She highlighted the importance of understanding how the bank has made efforts to comply with the law.

Warren encountered some pushback when CNBC’s Sara Eisen pointed out the challenges associated with releasing such sensitive information. However, Warren countered, emphasizing their experience in handling confidential matters without leaks.

“We have a lot of experience dealing with sensitive information and not leaking it. We’ve done it before. We certainly can fulfill our oversight responsibilities,” she stated.

Warren wants clarity on the Fed’s reasoning, especially since Wells Fargo has continued to face legal troubles.

Eisen noted that critics of Wells Fargo would likely back stricter regulations, particularly with support from figures like Michael Barr, who served as vice-chairman of the Federal Reserve from 2022 to 2025.

She mentioned some actions Wells Fargo has taken in response to the asset cap, including divesting certain businesses, investing around $2 billion annually in risk management, and making significant changes to their management structure.

In response, Warren maintained that her focus wasn’t on the bank’s activities per se but on whether Wells Fargo has truly stopped its illegal practices. She also expressed disappointment in the Federal Reserve Committee members who unanimously voted to lift the penalty.

“I want to be clear. Whether they’re Democrats or Republican appointees, every one of them should feel embarrassed. So, I want to see the bank’s exam report,” Warren stressed.