Yellen to join Brookings Institution after leaving Fed

Frederick Owens
February 6, 2018

"This is akin to the last scene in 'The Godfather,"' said Isaac Boltansky, an analyst at Compass Point Research & Trading.

"The firm has much to do to gain back the trust of its clients, managers, financial specialists and people in general", Yellen told the legislator.

She also successfully led the central bank to withdraw from the quantitative easing program, gradually raised interest rates and winded down the Fed's huge balance sheet without triggering market turbulence.

"I would have liked to serve an additional term and I did make that clear" when she interviewed with Trump, Yellen said in an interview broadcast by PBS.

WASHINGTON, D.C.: The US Federal Reserve on Friday ordered troubled commercial banking giant Wells Fargo to halt its expansion until it improves its governance, following "pervasive and persistent misconduct".

The Fed's unexpected censure of Wells Fargo should also be a boon to its rivals.

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"Wells Fargo has its work cut out for it over the next few years". Her supporters hail her effectiveness at pulling the central bank through the crisis then managing its way back out; detractors say she inflated financial bubbles to get there, the long-term effects of which will be disastrous.

Warren replied in a statement: "Her decision today demonstrates that we have the tools to rein in Wall Street - if our regulators have the guts to use them". In an introduction Friday night, he and Chief Financial Officer John Shrewsberry maintained a cool spotlight on numbers. And they're sticking with cost-cutting targets that include shaving about $4 billion in annual expenses by the end of 2019. She is the first Fed leader not to be given the chance to serve a second term in four decades. Wells had previously said it would add new directors this year, with three expected to retire before its April shareholder meeting. After planned replacements this year, five may remain.

"The company's absence of viable oversight and control of consistence and operational dangers contributed in material approaches to the significant damage endured", the Fed's supervision executive, Michael Gibson, said in a different letter to the board.

Penalties in the amount of $185 million were paid by the bank and the bank in 2017 reached a preliminary settlement of a class-action suit of $142 million. Ironically, this sanction actually provides an element of cover for the lender, which has found growth to be a challenge lately.

The Fed's move is the latest and most serious regulatory action against the bank over the past year and a half.

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