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Federal regulators have slapped restrictions on Wells Fargo, finding that the big bank failed to adequately plug holes in the plan it would deploy if it fell into bankruptcy.
The move announced Tuesday by the Federal Reserve and the Federal Deposit Insurance Corp. added to the troubles of Wells Fargo. The bank has been gripped by a scandal over sales practices that brought numerous federal and state investigations, the resignation of its CEO and public outrage.
The regulators' action related to the bank's so-called "living will" plan is unrelated to the scandal over the opening of millions of unauthorized accounts by bank employees. The action bars Wells Fargo from setting up new international banking businesses or buying any nonbank subsidiaries.
