Fed removes Wells Fargo asset shackles

In 2018, the Federal Reserve hit Wells Fargo with an asset cap after a yearslong record of misconduct.

On Tuesday, the Fed lifted that growth restriction. Wells Fargo has improved its internal governance and risk management enough to be released from its fetters, the regulator said.

The end of the cap reflects the bank’s “focused management leadership, strong board oversight and strict supervision,” said Michael S. Barr, a Fed governor who recently ended his service as the board’s vice chair for supervision. He said the three improvements “will need to continue for the firm to have a sustainable approach.”

The San Francisco-based bank and its CEO Charles W. Scharf called it “a pivotal milestone” in the company’s transformation.

Wells Fargo said it would grant nearly all of its 215,000 full-time workers an award valued at $2,000. For most, the prize will come in the form of a restricted stock grant, which the company described as a way to give its workers “an opportunity to own a part of Wells Fargo and hopefully benefit from our future success.”

Scharf took on the top job at Wells Fargo in 2019, after the bank’s series of scandals toppled two chief executives. In 2016, federal regulators and local officials in California revealed that the bank’s employees had for years created bank accounts for unwitting customers, without their consent, to meet aggressive sales goals.

Amazon planning $10B N.C. data center

Amazon plans to invest $10 billion toward building a campus in North Carolina to expand its cloud computing and artificial intelligence infrastructure, bringing a massive shot in the arm to a region where many textile and apparel jobs dried up a generation ago.

Amazon said Wednesday that its investment in rural Richmond County should create at least 500 jobs and support thousands more through construction and data center supply chain providers, according to statements from the company and Gov. Josh Stein’s office. Stein called the investment one of the largest in state history.

Data centers are already familiar to North Carolina’s landscape, including those operated by Apple.

Reddit sues Anthropic over user data

San Francisco-based Reddit sued artificial intelligence firm Anthropic, saying it has used the social media company’s content without permission to train its AI models.

The lawsuit, which was filed Wednesday in San Francisco Superior Court, alleges that Anthropic attempted to access Reddit data more than 100,000 times since last July. Reddit said this “unauthorized commercial use of its content” has breached its rules and exploited users’ personal data without their consent.

An Anthropic spokesperson said the company disagrees “with Reddit’s claims and will defend ourselves vigorously,” The AI firm, which was started by a group of ex-OpenAI employees, has taken a public position of being more oriented toward safety and responsibility than some of its competitors.

Reddit called Anthropic’s emphasis on trust and honesty “empty marketing gimmicks.”

Compiled from New York Times, Bloomberg and Associated Press reports.