Fed punishes Wells Fargo for years of misconduct, imposes harsh penalties

The Fed's punishment, a forceful intervention by the government, means that one of the country's largest and most powerful financial institutions will be unable to keep pace with its growing rivals

The Federal Reserve on Friday imposed unusually harsh penalties on Wells Fargo, punishing it for years of misconduct and barring it from future growth until the bank fixes its problems.

The central bank blasted Wells Fargo’s board for failing to oversee the bank, and it announced that the company would replace four members of its 16-person board by the end of the year.

The move, taking place on Janet L. Yellen’s last working day as the central bank’s chairwoman, is all the more extraordinary because it comes at a time when federal banking regulators appointed by President Trump are working vigorously to