This copy is for your personal, non-commercial use only.

To order presentation-ready copies for distribution to your colleagues, clients or customers visit
https://www.djreprints.com.

https://www.wsj.com/articles/wells-fargo-told-by-senator-to-fix-its-risk-management-practices-11654036083

RISK & COMPLIANCE JOURNAL

Wells Fargo Told by Senator to Fix Its Risk-

Management Practices
The chairman of the U.S. Senate Banking Committee said Wells Fargo Chief Executive Charles Scharf
needs a plan to improve the bank’s internal controls

Wells Fargo CEO Charles Scharf earned $24.5 million last year, up 20% from 2020.
PHOTO: ANDREW HARRER/BLOOMBERG NEWS

By
Richard Vanderford Follow
May 31, 2022 6:28 pm ET

Wells Fargo
& Co. must fix its governance and risk-management issues, the
chairman of the U.S. Senate Banking Committee said, highlighting what he called
a “laundry list” of consumer abuses and compliance breakdowns.

The bank has been plagued by weaknesses in its governance and risk-
management practices for nearly a decade,
Sherrod Brown
(D., Ohio) said in an
open letter sent Tuesday to Wells Fargo Chief Executive
Charles Scharf.

“It is clear that Wells Fargo still has a

long way to go to fix its governance and
risk management before it should be allowed to grow in size,” Sen. Brown wrote.
“It is unacceptable that after years of failed attempts, nothing seems to have
improved.”

A spokeswoman for Wells Fargo didn’t immediately respond to a request for

comment.

Sen. Brown highlighted a $7 million penalty the U.S. Securities and Exchange
Commission imposed on a Wells Fargo unit earlier this month for violations of
anti-money-laundering rules. Wells Fargo also was fined $250 million in
September for its failure to address longstanding problems in its mortgage
business.

Sen. Brown also pointed to a recent news report in which a former employee
alleged that Wells Fargo conducted fake interviews of Black and female job
applicants to give a false impression that it was trying to diversify its workforce.

Wells Fargo’s failure to combat alleged lending discrimination and increase

diversity among its staff raised questions about the bank’s ability to address
“myriad internal controls, risk management and general governance issues,” Sen.
Brown said.

The senator said he expected Mr. Scharf to make a plan to reform the bank’s risk
management and internal controls.

Mr. Scharf earned $24.5 million last year, receiving a 20% raise as the bank
recovered from its pandemic slump. He took over as the company’s top executive
in October 2019.

Write to Richard Vanderford at richard.vanderford@wsj.com

MORE FROM RISK & COMPLIANCE JOURNAL

•Diversity-Training Firms Applaud Blocking of Florida’s ‘Stop Woke Act’ August 19, 2022

•U.S. Extradited Russian Accused of Money-Laundering Tied to Ryuk Ransomware Gang

August 18, 2022

•Brazil’s JBS Shakes Up Compliance Efforts

August 16, 2022

Copyright © 2022 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit
https://www.djreprints.com.