Wells Fargo board warned that the bank wasn't adequately managing its risk controls

The bank's board of directors was warned 5 years ago that the bank's risk controls were not keeping pace with its growth

Wells Fargo's board of directors was warned 5 years ago that the bank's risk controls were not keeping pace with its growth, according to a report by the Office of the Comptroller of the Currency.

The report found that the board did not take sufficient action to address the concerns that were raised. As a result, the bank was able to continue to grow rapidly without putting in place the necessary controls to manage its risks. The report also found that the board did not have a clear understanding of the bank's risk appetite. This led to the bank taking on more risk than it could handle. The board's failure to adequately manage risk contributed to the bank's recent scandals. In 2016, Wells Fargo was fined $185 million for opening millions of fake accounts in customers' names without their knowledge or consent. In 2018, the bank was fined $1 billion for charging customers for auto insurance they did not need. The SEC's investigation found that Wells Fargo's board and senior management failed to properly oversee the company's risk management and compliance functions. The investigation also found that the board and senior management failed to take appropriate action to address the company's sales practices and other compliance issues.