Federal Reserve Chairwoman Janet Yellen described Wells Fargo’s treatment of its customers as “egregious and unacceptable” Wednesday, in the harshest language she has used regarding the bank’s fake accounts scandal.
Under pressure to take action against Wells Fargo’s board of directors or executives, Yellen said Wednesday that she couldn’t comment on an ongoing review of the bank’s actions. She did say, however, that the Fed is “committed to taking the actions we regard as necessary and appropriate” to ensure that the bank is well-managed.
“We are attempting to understand what the root causes of those problems are and to address them,” Yellen said at a press conference in Washington.
Sen. Elizabeth Warren, D-Mass., has called for Yellen to remove the directors who were at the bank during the time that it created millions of unwanted accounts for customers, as has the head of the largest community bank trade group. The Fed has the power to take a number of supervisory actions against banks it oversees.
The scandal received new attention late this summer when the bank revealed, following a review, that it created up to 3.5 million unasked-for accounts, two-thirds more than originally thought.
