After watching the repeated scandals of Wells Fargo, some members in Congress have had enough. A new bill gives power to the Fed to shut down megabanks. On Oct 4, Ranking Member of the House Committee on Financial Services Maxine Waters (D-Ca), introduced The Megabank Accountability and Consequences Act, reported in HousingWire.
“There are people who have literally concluded that these megabanks are above the law,” Ranking Member of the Subcommittee on Oversight and Investigations Al Green (D-Tx), said.
The bill would give the Fed the ability to shut down any megabank that repeatedly harms consumers. The Consumer Financial Protection Bureau and other federal banking regulators would examine banks and report on their practices.
Under the new bill, these bureaus would also have the authority to shut a bank down, break them up, take out a part of the bank or other solutions, Waters explained.
She answered that, under her bill, Wells Fargo would “absolutely qualify” to be shut down.
“As long as we believe that shutting down a bank is dangers to our economy because of the services they provide, we will never move,” she said. “We cannot be held hostage.”
See 38-page Report: The Case for Holding Megabanks Accountable: An Examination of Wells Fargo's Egregious Consumer Abuses