Wells Fargo Revamps Its Risk Management Department

Wells Fargo Revamps Its Risk Management Department

March 26, 2018         Written By John H. Oldshue

Wells Fargo is restructuring its risk management department in response to a sanction from the Federal Reserve. The Wall Street Journal reports four of the top executives in that department will be retiring over the next three months, and new “lines of defense” will be put in place to prevent problems in the future.

In February, the Federal Reserve restricted Wells Fargo’s growth until the company could improve its risk management practices. This ruling came after repeated misconduct from the bank, including 3.5 million fake checking and credit card accounts, 863 illegal vehicle repossessions, and potentially thousands of overcharged mortgage fees. When the bank recently tried to refund customers for unnecessary auto insurance charges, they sent some refunds to the wrong people—those not affected by the charge.

Featured Fair Credit Card

Top Features:

All credit types welcome to apply!

In response to these errors and others from the last few years, the Fed capped Wells Fargo’s total asset size to its value at the end of 2017. Each current director at the bank was required to sign a cease and desist order. The Fed’s official statement said, “In recent years, Wells Fargo pursued a business strategy that prioritized its overall growth without ensuring appropriate management of all key risks.”

The Federal Reserve required three board members to be replaced by the end of April and one more by the end of the year. Wells Fargo employees say an internal memo at the bank scheduled Jim Richards, head of financial crimes risk management, to retire in early April; and Kevin Oden, head of operational risk and compliance, as well as Vic Albrecht, head of the community banking risk group, to retire in May. Keb Byers, head of enterprise risk, is set to retire in June and will only be on “special assignment” until then.

The information contained within this article was accurate as of March 26, 2018. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

Review LowCards.com Editor’s Top Cards!

2020 Top Credit Cards by Category
Featured Fair Credit Card
Reflex Mastercard® Credit Card
EDITOR RATING
Featured Fair Credit Card
Reflex Mastercard® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: All credit types welcome to apply!

Featured Low Interest Card
ABOC Platinum Rewards Mastercard®
EDITOR RATING
Featured Low Interest Card
ABOC Platinum Rewards Mastercard®

Applying for this card will securely direct you to the issuer's website.

Top Features: No annual fee; $150 statement credit after spending $1,200 in first 90 days; 0% on Purchases for 12 months

Featured Bad Credit Card
First Digital NextGen Mastercard® Credit Card
EDITOR RATING
Featured Bad Credit Card
First Digital NextGen Mastercard® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: Reports to all three credit bureaus, perfect credit not required for approval

Featured Good Credit Card
Petal® Visa® Credit Card
EDITOR RATING
Featured Good Credit Card
Petal® Visa® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.