Business

Wells Fargo to Replace Four Board Members After Fed Censure

Posted February 2, 2018 7:22 p.m. EST

The Federal Reserve on Friday ordered Wells Fargo to replace four board members and limit its growth until the bank significantly improved its business practices.

The action by the Fed follows revelations over the past two years that the bank had manipulated and deceived its customers by opening dummy accounts in their names and forcing them to take out unnecessary auto insurance.

The Federal Reserve, which oversees the San Francisco-based bank, said in an announcement that Wells Fargo needed to overhaul its risk management and strengthen its boards oversight as well.

“Until the firm makes sufficient improvements, it will be restricted from growing any larger than its total asset size as of the end of 2017,” it said in a release posted on its website.