WASHINGTON—The Federal Reserve has rejected Wells Fargo & Co's plans to prevent further consumer abuses and told the scandal-plagued bank it needs stronger
checks on management, according to a Reuters report.
“The concerns raised by the Fed, which have not been previously reported, are likely to increase the time it takes the central bank to lift an asset cap it imposed on Wells Fargo in February following a string of sales practices scandals,” Reuters said.
According to Reuters, the bank must draw up a robust plan to improve its governance and risk management controls before the Fed will lift the cap. In February, Wells Fargo Chief Executive Tim Sloan said the bank was "on the fast track" to meeting those conditions.