In a move that many are likening to the ending scene in the Godfather, former Fed Chair Janet Yellen has made her final move on her way out the door. According to the Federal Reserve, Yellen, has slapped Wells Fargo with unprecedented sanctions in wake of last year’s shocking fraudulent scandal.
For those that weren’t aware, last year, Wells Fargo opened up more than 3m fake accounts without the knowledge of customers (We know, we were among them). Also in that mix, the bank, decided to trick people into auto insurance they didn’t actually need — followed by millions in bank fees and overdraft fees. Under the new orders placed by the Federal Reserve, the bank’s assets will indeed be frozen at $2trillion.
“The consumers harmed by Wells Fargo expect that robust and comprehensive reforms will be put in place to make certain that the abuses do not occur again,” Fed chair Janet Yellen says.
Wells Fargo, meanwhile, has about 60 days to clean up its act before their first review. Formally, they have until the end of September to get it all the way together or else.