The Federal Reserve rejected Wells Fargo’s plan to prevent more consumer abuses by the embattled bank, adding it needs stronger checks on the company’s management, Reuters reported citing three people with knowledge on the matter.
According to the report, the Fed thinks Wells Fargo needs to implement measures to significantly improve risk management and governance controls. Earlier this year, CEO Tim Sloan said Wells was “on the fast track” to meet the Fed’s conditions.
Shares of Wells Fargo fell 2 percent in the premarket following the news.
