Karen Peetz to retire from Wells Fargo board

(Reuters) - Wells Fargo & Co (N:WFC) said on Monday board member Karen Peetz has decided not to stand for reelection after roughly two years on the board. The fourth-largest U.S. bank by assets also said it has elected Wayne Hewett to join the board.

Peetz was named to the board in February of 2017 and chaired the risk committee, a key position as Wells Fargo works to prove that it has improved its risk management controls. The former president of Bank of New York Mellon Corp (N:BK) is stepping down to devote more time to other commitments, the statement said. She will retire as director during the company's annual shareholder meeting in April.

Enhancing its risk controls is a priority for the bank after a series of scandals stemming from its sales practices landed the bank under public and regulatory scrutiny. Revelations that Wells Fargo opened up potentially millions of unauthorized accounts has resulted in billions of fines for the bank and a punitive cap on assets from the Federal Reserve. Hewett is currently chairman of industrial manufacturing company DiversiTech Corporation and has experience with medical devices, food and electronics, the statement said. “Wayne brings a unique and relevant background to Wells Fargo’s business and strategic direction, further enhancing the breadth of skills and experience of our board,” said President and Chief Executive Tim Sloan.

https://m.investing.com/news/stock-market-news/karen-peetz-to-retire-from-wells-fargo-board-1740039?ampMode=1

Liang withdraws nomination for Fed board seat

WASHINGTON (Reuters) - Former Federal Reserve economist Nellie Liang said on Monday she had withdrawn her nomination for a seat on the Fed's Board of Governors, citing concern over a lengthy Senate confirmation process. "I have decided to withdraw my name from consideration to be a member of the Board of Governors of the Federal Reserve because the likelihood of a prolonged process could have left me in professional limbo for too long," Liang said in a statement. President Donald Trump, who has criticized the central bank for raising interest rates, nominated Liang in September.

Liang, who established the Fed's Division of Financial Stability in 2010, left the central bank two years ago to join the Brookings Institution think tank. "We supported her nomination and believe she would have made a good Governor," White House spokeswoman Lindsay Walters said in a statement. As head of the Fed's increasingly influential financial stability office, she helped develop the policies put in place after the 2008 financial crisis that many Republicans have hoped to lighten. At the time of the nomination, two White House officials told Reuters that Liang had a strong background on financial and monetary stability, including crisis response, and was considered a good fit for the Fed board.

https://m.investing.com/news/economy-news/liang-withdraws-nomination-for-fed-board-seat-white-house-1740217

Wells Fargo customers to be compensated under 50-state settlement

Under a settlement filed Dec. 28, 2018, with 50 states and the Washington, D.C., over violations of state consumer protection laws, Wells Fargo Bank will create a consumer redress review program through which consumers who have not been made whole through other restitution programs already in place can seek review of their inquiry or complaint by a bank escalation team for possible relief. The settlement resolves allegations by Delaware and other state attorney general offices that Wells Fargo violated state consumer protection laws by opening millions of unauthorized accounts and enrolling customers into online banking services without their knowledge or consent; improperly referring customers for enrollment in third-party renters and life insurance policies; improperly charging auto loan customers for force-placed and unnecessary collateral protection insurance; failing to ensure that customers received refunds of unearned premiums on certain optional auto finance products; and incorrectly charging customers for mortgage rate lock extension fees.

The Delaware Department of Justice Consumer Protection Unit, which joined in the investigation and settlement, said any Delawarean who was or currently is a customer of Wells Fargo and experienced any of the above issues, will be able to utilize a dedicated website that will go live in late February 2019 to take steps to be compensated. Delaware DOJ will provide an update for consumers once more information concerning consumer redress is made available. The consumer redress process will be overseen by the federal Office of the Comptroller of the Currency and the federal Consumer Financial Protection Bureau. The settlement represents the most significant engagement involving a national bank by state attorneys general acting without a federal law enforcement partner. In addition to the consumer restitution, as part of the settlement, Wells Fargo will pay a total of $575 million to the states and Washington, D.C.

http://www.doverpost.com/news/20190107/wells-fargo-customers-to-be-compensated-under-50-state-settlement?template=ampart

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>>4656336 Liang withdraws nomination for Fed board seat