The Federal Reserve’s top official on regulatory matters on Friday voluntarily recused himself from any matters specific to Wells Fargo, the bank embroiled in a number of investigations.
Randal Quarles, the Fed’s new vice chairman for supervision, said the potential conflict came from his extended family’s sale of an interest to the bank. Quarles divested his own stake in Wells WFC, +1.10% before becoming vice chairman, the Fed said.
Quarles will still be involved in regulating Wells Fargo, since he’ll still oversee the Fed’s supervision and regulatory responsibilities.
Wells Fargo has felt the heat from regulators since it was found the bank opened millions of customer accounts without permission. It’s also facing investigations over auto insurance and mortgage fees.