Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Corporate Update (February 2018)
10 slides from Wells Fargo &'s corporate update, Feb 5, 2018
Slide 1: Wells Fargo Update: Federal Reserve Consent Order
Wells Fargo Update: Federal Reserve Consent Order February 2, 2018 © 2018 Wells Fargo & Company. All rights reserved. Confidential. Exhibit 99.2
Slide 2: Federal Reserve Consent Order summary
1Wells Fargo Update Wells Fargo entered into a Consent Order with the Board of Governors of the Federal Reserve System on February 2, 2018, relating to our governance oversight, and compliance and operational risk management program, which relates to prior issues including our sales practices anno
Slide 3: Relevant risk management enhancements already underway
2Wells Fargo Update Relevant risk management enhancements already underway Over the last 17 months, we continued our focus and accelerated progress on the governance, compliance and operational risk issues referenced in the Federal Reserve’s Consent Order, and we agree with the assessment that our
Slide 4: Board Leadership Structure, Board Composition, Governance Practices
3Wells Fargo Update Board Leadership Structure Board Composition Governance Practices Separated the roles of Chairman and CEO Amended By-Laws to require an independent Board Chair Elected new independent Chair, Elizabeth “Betsy” Duke (former member of the Federal Reserve Board of Governors) ef
Slide 5: Actions taken to strengthen Risk Management organization
4Wells Fargo Update Actions taken to strengthen Risk Management organization Following the centralization of risk management functions in 2017, we designed and are implementing a fully integrated operating model for risk management that covers all business groups and enterprise staff groups (inclu
Slide 6: Asset cap and balance sheet flexibility
5Wells Fargo Update Effective 2Q18, Wells Fargo’s total consolidated assets will be held to the December 31, 2017 period-end level of $2.0 trillion - Compliance will be measured on a 2-quarter daily average basis, which allows for management of temporary fluctuations Asset cap will remain in eff
Slide 7: Financial Institutions' Deposits; Trading Assets and Short-term Investments
6Wells Fargo Update Financial Institutions’ Deposits Trading Assets and Short- term Investments As of 12/31/17, ~$200 billion of non- operational deposits - On average these deposits provide ~45% liquidity value under the liquidity coverage ratio (LCR) as they do not meet requirements of the opera
Slide 8: What will the customer impact be?
7Wells Fargo Update What will the customer impact be? - We will continue to serve our customers’ financial needs including saving, borrowing and investing, as we help them succeed financially - We have flexibility to manage our Balance Sheet by optimizing certain activities, which could include te
Slide 9: Key takeaways
8Wells Fargo Update Key takeaways We have been focused on the same issues cited by the Federal Reserve, and while we have made meaningful progress we acknowledge additional work is necessary We are building on our progress to date, leveraging our experience in risk management in areas where we h
Slide 10: Forward-looking statements and additional information
9Wells Fargo Update Forward-looking statements and additional information Forward-looking statements: This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make forward-looking statements in our other docum
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