The Fed said Friday that Wells Fargo's business strategy prioritized its own growth at the expense of risk management resulting in compliance breakdowns.
As Janet Yellen's tenure comes to an end, it's worth reflecting on what may be her greatest accomplishment as chair of the Federal Reserve: With calm and dispassionate competence, she kept the central bank at arm's length from a political system paralyzed by partisan strife.
Yellen was appointed by Barack Obama as the first woman to lead the Fed.
Mr Powell has served on the Fed's board since 2012, and is expected to take over when Ms Yellen leaves her post on 3 February.
In heading to Brookings, Yellen follows in the steps of former Fed Chairman Ben Bernanke and former vice chairmen Donald Kohn and Alan Blinder, along with former top Fed staffer Nellie Liang. Her supporters hail her effectiveness at pulling the central bank through the crisis then managing its way back out; detractors say she inflated financial bubbles to get there, the long-term effects of which will be disastrous. Earlier on Friday, the Brookings Institution announced Yellen, 71, is joining the Washington-based think tank to continue her economic studies and particularly her analysis of the labour market.
In a break from past practice, Trump opted not to nominate Yellen to a second four-year term. She picked up where her predecessor, Ben Bernanke, had left off in nurturing the country's recuperation from a crisis that almost toppled the financial system. "Yes, it can keep going", she said. The Fed has a twin mandate to promote full employment while keeping a lid on inflation.
Janet Yellen leaves the with the economy clicking, the stock market humming and the central bank on a clear path away from the emergency policies it put into place to help rescue the US from the deep throes of the financial crisis. He will be officially sworn in Monday.
The bank has also said it would make $80 million in refunds to more than 570,000 of its auto loan customers who were charged for insurance without their knowledge.
He has been supportive of gradual interest rate rises and of the consensus that the Fed should slowly decrease the asset holdings it gathered as part of its efforts to battle the financial crisis.
During Yellen's four-year term, unemployment fell to 4.1 per cent, from 6.7 per cent when she took office.