The committee of independent directors of Wells Fargo has hired Harbinger Strategies to deal with ongoing Congressional oversight of the scandal-tainted bank.
The group issued a report April 2017 that blamed cultural, structural and leadership deficiencies for the phony accounts scandal. It decided Wells' new management is committed to taking decisive action to restore consumer trust in the bank.
Harbinger has former aides to House Majority leader Eric Cantor representing the directors. They are Steve Stombres, Cantor's chief of staff, and Kyle Nevins, deputy CoS.
The Federal Reserve, which punished Wells in the wake of the fake accounts crisis, last week allowed Wells to expand its participation in the COVID-19 Paycheck Protection Program.
The move enables Wells to accept loan applications from small companies in the Small Business Administration's emergency lending program. The bank had been limited to making loans to nonprofits and businesses with fewer than 50 employees.
CEO Charlie Scharf said Wells "appreciates the targeted action of the Federal Reserve to support the needs of small businesses through PPP and looks forward to expanding relief to many more small businesses and non-profits."
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