Wells Fargo & Co. said it will address the shortcoming that the Federal Reserve Board and the Federal Deposit Insurance Corp. found in its 2019 resolution plan.
The Fed and FDIC found that Wells Fargo had a shortcoming related to the "implementation of its governance mechanism intended to facilitate [single point of entry strategy] by providing for the timely deployment of internal capital and liquidity."
The bank must submit a plan to the agencies by March 31, 2020, detailing how it will address this shortcoming.
"Wells Fargo is committed to continued strengthening of these established capabilities, and we will address the feedback we received from the agencies in connection with our 2019 resolution plan within the time requested," the company said in a news release.
Shortcomings are weaknesses that raise questions about the feasibility of a company's plan, but they are are not as severe as deficiencies. The agencies found no deficiencies in Wells Fargo's plan.
Resolution plans, commonly known as living wills, describe a company's strategy for rapid and orderly resolution in bankruptcy without government support or imperiling the broader financial system during severe financial distress.