Banking Reform Task Force (BRTF)

About the Banking Reform Task Force

In September 2016, Treasurer John Chiang issued sanctions against Wells Fargo Bank after the bank admitted that thousands of its bank employees opened more than two million fraudulent consumer accounts.  Those sanctions included suspension of investments by the Treasurer’s Office in all Wells Fargo securities, suspension of the use of Wells Fargo as a broker-dealer for purchasing of investments by the Treasurer’s Office, and suspension of Wells Fargo as a managing underwriter on negotiated sales of California state bonds where the Treasurer appoints the underwriter.

As result of this banking scandal, the Treasurer formed the Banking Reform Task Force comprised of distinguished academics, financial regulators, and consumer advocates. The Task Force is charged with crafting actionable recommendations to federal and state policymakers about how to reform the banking industry. These reforms will center on eliminating deceptive marketing, racially discriminatory lending practices, unnecessary fees, illegal kickbacks, and other abusive practices.

Mission Statement

To examine the causes of the breakdown of the culture of integrity in our banks, specifically the role of federal and state financial regulators, including the extent to which they enforced, or failed to enforce statutory, regulatory, or supervisory requirements that might have prevented the breakdown exemplified by the recent Wells Fargo scandal.

 

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