In another blow to the leadership of Wells Fargo, regulators on Tuesday rejected the San Francisco bank’s “living will” plan for the second time and placed growth restrictions on the firm until the problems are cleared up.
The Dodd-Frank act mandated the writing of living wills so that regulators would have a blueprint to follow that would allow the nation’s largest banks to fail without bringing down the entire financial system and economy. The plans are intended to allow the banks to be resolved under federal bankruptcy law.
