Context On September 13, 2021, Senator Elizabeth Warren sent FED Chair Jerome Po

On September 13, 2021, Senator Elizabeth Warren sent FED Chair Jerome Powell a letter
In the letter she wrote “Under Janet Yellen’s leadership, the Fed  placed Wells Fargo under an asset cap in 2018 due to its ‘widespread  consumer abuses and other compliance breakdowns.  In the three years  since then, numerous additional revelations have surface about Wells  Fargo’s continued unethical and anti-consumer conduct. These new  revelations have once again made clear that continuing to allow this  giant bank with a broken culture to conduct business in its correct form  poses substantial risks to consumers and the financial system.”   Senator Warren goes on to ask that the FED revoke Wells Fargo’s status  as a financial holding company. The action would require Wells Fargo to  separate its bank subsidiary from it other financial activities.
Wells Fargo is an enormous financial services company with $1.9  trillion in assets.  It serves 1 in 3 US households and 10% of US small  business.  In reply to Senator Warren’s demand Well Fargo replied,
In it’s reply it cites progress achieve under the new CEO Charles Scharf, including: 1) three business group have been split into five; 2)  it has created four new functions to provide greater oversight and  transparency; 3) it has brought on board 10 new Operating Committee  members out of the total committee of 17; 4) created a new team design  to facilitate oversight of consumer practices; 5) created new enterprise  wide risk assessment with the intent to design new controls; 6)  “Implemented a new incentive plan for bank branches that is governed by  stronger oversight and controls, and focused on customer relationships.”  Emphasis added by Dr. Isley.
The FED continues to maintain that Wells Fargo has not done enough  to rein in the incentive failures that revealed the failure of it  corporate governance. We have seen that several of the largest  conglomerate in the US decide that it is time to divide their  agglomerate groups into smaller units for focus and function.  J & J  will separate it consumer products division and its pharmaceutical  division.  GE will divide into three units; aviation; energy, and  healthcare.  It is time for Wells Fargo to separate it’s banking  business from it’s other enterprises?  YES NO Explain
What is the principal-agent problem? 
What is the role of corporate governance? 
How is corporate culture different than governance? 
Can incentive systems align culture with governance? 
How might separating Wells Fargo’s banking business from it’s other enterprises improve depositor safety? 

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