Wells Fargo Confirms Termination of Two Longstanding Federal Reserve Consent Orders
Wells Fargo (NYSE: WFC) announced the termination of two longstanding Federal Reserve consent orders from 2011, one concerning legacy mortgage servicing activities and another regarding the legacy Wells Fargo Financial business. CEO Charlie Scharf highlighted this development, along with last week's termination of the CFPB's 2022 consent order, as significant progress in resolving historical matters.
Since 2019, Wells Fargo has successfully closed nine consent orders, demonstrating the company's commitment to establishing improved processes and controls to meet regulatory expectations. Scharf emphasized that Wells Fargo is now a different company and expressed confidence in completing the work required for remaining consent orders.
Wells Fargo (NYSE: WFC) ha annunciato la cessazione di due storici ordini di consenso della Federal Reserve risalenti al 2011, uno riguardante le attività di gestione dei mutui legacy e l'altro relativo all'ex business di Wells Fargo Financial. Il CEO Charlie Scharf ha sottolineato questo sviluppo, insieme alla cessazione dell'ordine di consenso del CFPB del 2022 avvenuta la settimana scorsa, come un progresso significativo nella risoluzione di questioni storiche.
Dal 2019, Wells Fargo ha chiuso con successo nove ordini di consenso, dimostrando l'impegno dell'azienda a stabilire processi e controlli migliorati per soddisfare le aspettative regolatorie. Scharf ha enfatizzato che Wells Fargo è ora un'azienda diversa e ha espresso fiducia nel completare il lavoro necessario per gli ordini di consenso rimanenti.
Wells Fargo (NYSE: WFC) anunció la finalización de dos órdenes de consentimiento de la Reserva Federal de 2011, una relacionada con actividades de servicios de hipoteca heredadas y otra respecto al negocio heredado de Wells Fargo Financial. El CEO Charlie Scharf destacó este desarrollo, junto con la finalización de la orden de consentimiento del CFPB de 2022 la semana pasada, como un progreso significativo en la resolución de temas históricos.
Desde 2019, Wells Fargo ha cerrado con éxito nueve órdenes de consentimiento, demostrando el compromiso de la empresa con el establecimiento de procesos y controles mejorados para cumplir con las expectativas regulatorias. Scharf enfatizó que Wells Fargo es ahora una empresa diferente y expresó confianza en completar el trabajo necesario para las órdenes de consentimiento restantes.
웰스파고 (NYSE: WFC)는 2011년의 두 가지 오래된 연방준비제도 위원회의 동의 명령을 종료했다고 발표했습니다. 하나는 오래된 주택담보대출 서비스 활동에 관한 것이고, 다른 하나는 웰스파고 금융 사업에 관한 것입니다. CEO 찰리 샤프는 이 발전을 강조하며, 지난주 CFPB의 2022년 동의 명령 종료와 함께 역사적인 문제 해결에서 중요한 진전을 나타낸다고 밝혔습니다.
2019년 이후 웰스파고는 성공적으로 아홉 개의 동의 명령을 종료했으며, 이는 규제 기대를 충족하기 위한 개선된 프로세스와 통제를 마련하겠다는 회사의 헌신을 보여줍니다. 샤프는 웰스파고가 이제 다른 회사가 되었으며, 남은 동의 명령을 완료하는 데 필요한 작업을 완수하겠다는 자신감을 표명했습니다.
Wells Fargo (NYSE: WFC) a annoncé la résiliation de deux ordonnances de consentement de la Réserve fédérale datant de 2011, l'une portant sur les activités de services hypothécaires héritées et l'autre concernant l'entreprise héritée de Wells Fargo Financial. Le PDG Charlie Scharf a souligné ce développement, ainsi que la résiliation, la semaine dernière, de l'ordonnance de consentement de 2022 du CFPB, comme un progrès significatif dans la résolution de questions historiques.
Depuis 2019, Wells Fargo a réussi à clôturer neuf ordonnances de consentement, démontrant l'engagement de l'entreprise à établir des processus et des contrôles améliorés pour répondre aux attentes réglementaires. Scharf a souligné que Wells Fargo est maintenant une entreprise différente et a exprimé sa confiance dans l'achèvement du travail nécessaire pour les ordonnances de consentement restantes.
Wells Fargo (NYSE: WFC) gab die Beendigung von zwei langjährigen Zustimmungserklärungen der Federal Reserve aus dem Jahr 2011 bekannt, eine betrifft die Erbgeschäftsaktivitäten im Bereich Hypothekenservice und die andere das Erbe von Wells Fargo Financial. CEO Charlie Scharf hob diese Entwicklung zusammen mit der Beendigung der Zustimmungserklärung des CFPB von 2022 in der vergangenen Woche als bedeutenden Fortschritt bei der Lösung historischer Angelegenheiten hervor.
Seit 2019 hat Wells Fargo erfolgreich neun Zustimmungserklärungen abgeschlossen, was das Engagement des Unternehmens zur Etablierung verbesserter Prozesse und Kontrollen zur Erfüllung der regulatorischen Erwartungen demonstriert. Scharf betonte, dass Wells Fargo jetzt ein anderes Unternehmen sei und äußerte zuversichtlich, die benötigte Arbeit für die verbleibenden Zustimmungserklärungen abzuschließen.
- Termination of two Federal Reserve consent orders from 2011
- Recent termination of CFPB's 2022 consent order
- Successfully closed nine consent orders since 2019
- Improved regulatory compliance and internal controls
- Still has remaining consent orders to resolve
Insights
The termination of these Federal Reserve consent orders marks a pivotal moment in Wells Fargo's regulatory rehabilitation journey. These orders, which date back to 2011 and addressed mortgage servicing and Wells Fargo Financial operations, represented significant regulatory oversight that has now been lifted. This development, combined with last week's CFPB consent order termination, brings the total number of closed consent orders to nine since 2019.
This regulatory relief carries substantial operational implications. The removal of these orders likely reduces compliance costs, streamlines decision-making processes and potentially allows for more operational flexibility in mortgage servicing operations. Since CEO Charlie Scharf's appointment in 2019, Wells Fargo has demonstrated a systematic approach to addressing regulatory challenges, with these terminations serving as concrete validation of the bank's reformed compliance framework.
The timing and sequence of these regulatory victories are particularly noteworthy. Having addressed nine consent orders in approximately five years suggests a methodical, successful approach to regulatory remediation. This pattern of consistent progress could accelerate the resolution of remaining consent orders, potentially including the asset cap restriction that has been a significant constraint on the bank's growth.
For investors, these developments signal a material de-risking of Wells Fargo's regulatory profile. The termination of legacy consent orders reduces regulatory overhead costs and suggests a decreased likelihood of future compliance-related penalties. Moreover, it strengthens Wells Fargo's competitive position in the mortgage servicing market, where regulatory restrictions have historically its operational flexibility.
Wells Fargo Bank branch located in the Wells Fargo Center (Photo: Wells Fargo)
Charlie Scharf, Wells Fargo’s CEO since 2019, said of today’s news:
“I am happy to confirm that the Federal Reserve has terminated two longstanding consent orders. Coupled with last week’s announcement that the CFPB’s 2022 consent order terminated, today’s news is another important sign that we continue to make clear, meaningful progress to resolve our historical matters. Wells Fargo is a different company today, and the resolution of these two longstanding Federal Reserve consent orders is another indication that our team is establishing the right processes and controls to meet our regulators’ and our own expectations. We remain confident in our ability to complete the work required in our remaining consent orders, and I am thankful to all my partners at Wells Fargo for their hard work and perseverance to put these issues behind us.”
About Wells Fargo
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Media
Beth Richek, 980-308-1568
beth.richek@wellsfargo.com
Investor Relations
John
john.m.campbell@wellsfargo.com
Source: Wells Fargo & Company
FAQ
What Federal Reserve consent orders did Wells Fargo (WFC) get terminated in 2024?
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