Reuters, citing three people with knowledge of the discussions, reported that because the Federal Reserve rejected discussed plan it could take longer for the Fed to lift the asset cap on the company put in place due to a series of sales practices scandals.
Back in February Tim Sloan, chief executive, said the company was “on the fast track” to get the cap lifted, reported Reuters. “We work diligently to address feedback provided,” said in a statement to Reuters. “This is an ongoing, iterative process.”
Discussed plan was submitted to the Federal Reserve in April, and the bank expected the Fed to approve it by the summer. Instead, it was told to go back and improve upon the plan. WFCs and Wells Fargo is required to have stronger board oversight, agree to pay back customers hurt by its sales practices in the past and engage in more than 20 other actions designed to improve government, compliance and risk management, noted the report. Wells Fargo missed the September 30 deadline to have the plan approved insured by the fdic, put in place and reviewed by a third party that was independent, noted the report.
During an appearance on CNBC earlier this week Sloan said the cap on assets should be lifted during the first half of next year, saying talks with the Fed were ongoing. “I’m optimistic that we’ll continue to make progress, but we need to demonstrate that we’re deserving of the asset cap being lifted,” Sloan said.