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Fed penalizes Wells Fargo over consumer abuses

Janet Yellen.
Federal Reserve Chair Janet Yellen. Photo: Alex Wong / Getty Images

The Federal Reserve is restricting Wells Fargo from growing any bigger than it was at the end of 2017, CNN reports, after learning of "widespread consumer abuses."

Why it matters: Per the New York Times, the bank "admitted that employees opened more than 3 million fake accounts in order to meet sales quotas." Fed Chairwoman Janet Yellen announced the penalties on Friday, her last day before Jerome Powell takes over as chairman. She said no "pervasive and persistent misconduct" can be tolerated.