Fed, FDIC Say Wells Fargo 'Remediated Deficiencies' in 2015 Living Will
April 24 2017 - 5:13PM
Dow Jones News
By Emily Glazer
The Federal Deposit Insurance Corp. and the Federal Reserve on
Monday said Wells Fargo & Co. is back on track for its
living-will regulatory assessment.
The regulators said the bank "adequately remediated the
deficiencies" in its 2015 plan and is no longer subject to "growth
restrictions" that were imposed on it when the regulators said it
failed the test in December 2016.
The news offers a bright spot for the San Francisco bank, which
faces a potentially contentious shareholder meeting Tuesday
following its sales practices scandal that erupted in the fall.
A Wells Fargo spokesman didn't immediately respond to a request
for comment.
So-called resolution plans, known as living wills, are a
requirement of the 2010 Dodd-Frank law, which sought to prevent
bailouts partly by forcing big banks to develop a plan for how they
could go through bankruptcy without taxpayer assistance. The law
directed regulators to judge whether plans are credible and gave
them power to sanction, or even break up, firms that are found
lacking.
Wells Fargo submitted a revised plan in March 2017.
In a letter to Wells Fargo Chief Executive Timothy Sloan dated
April 24, the regulatory agencies highlighted the bank's steps in
legal entity rationalization and changes to better map shared
services, according to a copy shared with media.
Wells Fargo is next required to file a new living will plan by
July 1, 2017, alongside other banks.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
April 24, 2017 16:58 ET (20:58 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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