Sherrod Brown (D-OH) raised concerns about unfair labor practices at Wells Fargo to Acting Comptroller Michael Hsu and Federal Reserve Vice Chair Michael Barr.
Brown mentioned the fact that employees at a number of Wells Fargo facilities have contacted the National Labor Relations Board to complain about what they perceive to be unfair labor practices. Brown asked the authorities to take into account the allegations of unfair labor practices while determining the safety and soundness of the bank because it was stated that the workers had been subjected to retribution after making the reports.
“Recent allegations of unfair labor practices against Wells Fargo are yet another example of the bank’s pattern of repeatedly violating a range of federal and state laws,” according to Brown. “Existing monetary penalties and growth restrictions have not been sufficient to prevent Wells Fargo from repeated consumer abuses, compliance failures, and gross mismanagement. Regulators should take stronger actions to change Wells Fargo’s culture of noncompliance and account for the troubling unfair labor practice allegations that could be the bellwether for broader safety and soundness and consumer compliance risks.”
Senator Brown has been diligent in his efforts to hold Wells Fargo accountable for what are claimed to be unethical business practices. Brown voiced his disapproval of the unethical practices of Wells Fargo during a lengthy hearing on banks that took place in September. In light of the claims of racism, Brown has also ordered that an investigation be conducted into the refinancing practices of Wells Fargo. Brown argued that Wells Fargo is “too large to manage” after the bank was fined $250 million for engaging in risky practices regarding mortgage servicing. Brown took the initiative to find a solution to the problem of Wells Fargo creating millions of fictitious customer accounts.
