In Wells Fargo Case, Watchdogs Didn’t Play Team Ball
ByThe Wells Fargo case has exposed something besides bad bank practices: gaps in United States regulatory teamwork.
The Justice Department was kept in the dark until the last minute about the widespread problem of unauthorized accounts at the bank and the $185 million fine it would be paying, according to people familiar with the situation. That is why prosecutors are only just now beginning an investigation.
The United States has a sprawling financial oversight regime. Four federal agencies watch over banks, while two more regulate markets and thus the financial institutions involved. Those entities do not have criminal authority, however, and do not include state and local officials who also have supervisory duties…
In Wells Fargo Case, Watchdogs Didn’t Play Team Ball
