Despite the fact that Wells had already shuffled its board once, the Federal Reserve is now requiring Wells Fargo to remove at least four of its current directors. The Feds’ concern? Eight of the current directors were on the board during the period when Wells managed to haul in 3.5 million fake accounts and engage in other consumer debt shenanigans. The Feds did not name names for ouster, but Wells will proceed with the changes.
We have seen board member held personally liable for damages. We have seen board members charged civilly in some fraud cases. But, actually getting down to “You’re outta here,” ’tis a rare thing. However, Wells has had a tin ear for some time now and sharpening up the hearing (as in putting ears to the ground) does require new minds, new views, and new blood.