As the third-largest bank continues to suffer under a sales scandal that happened in 2016, Wells Fargo & Co detailed new regulatory restrictions imposed by the U.S. Federal Reserve. This news sent its shares down sharply in after-hours trading.
1. What are the growth restrictions on the bank imposed by the Feds?
2. Why was this restriction imposed?
3. How will this potentially affect its profits and balance sheet?
4. How much was the settlement it made regarding the 2016 scandal?
5. What was the most interesting thing that you read in this article?
Schroeder, P. and L. LaCapra. (2018). Fed orders Wells Fargo to halt growth over compliance issues. Reuters.com. Feb.2 (Retrievable online at https://www.reuters.com/article/us-usa-wells-fargo-fed/fed-orders-wells-fargo-to-halt-growth-over-compliance-issues-idUSKBN1FM2V9?il=0)