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Fed imposes penalties on Wells Fargo

WASHINGTON  The Federal Reserve is imposing more penalties on Wells Fargo, freezing the bank's growth until it can prove it has improved its internal controls. 

In addition, the San Francisco-based bank agreed to replace three board members by April and a fourth by the end of this year.

The new penalties were announced late Friday on Fed Chair Janet Yellen's last day at the central bank. 

In a statement, she said that the Fed "cannot tolerate pervasive and persistent misconduct at any bank."

Wells Fargo has admitted that employees opened more than 3 million fake accounts in order to meet sales quotas. It ended up paying $185 million to regulators and settled a class-action suit for $142 million.

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