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.
The report said Wells sent its original plan to the Fed in April with the expectation the central bank would approve it over the summer. Instead, the Fed denied Wells’ proposal.
Wells Fargo has been struggling to recover from a scandal two years ago in which it was discovered that thousands of employees opened multiple accounts in their names without their consent. Over the past two years, the stock is down more than 6 percent while the S&P 500 is up 22 percent in that time period.
Both the Fed and Wells declined Reuters’ requests for comment.