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Federal regulators rejected the revised living will submitted by Wells Fargo and will restrict the bank’s growth as a result, they announced Tuesday.

The decision, made jointly and unanimously by the boards of the Federal Reserve and the Federal Deposit Insurance Corporation, is the latest in a run of bad news for Wells Fargo, which is suffering through a separate controversy over its employees’ creation of unwanted accounts for customers.

The regulators said Wells Fargo failed to make sufficient changes to its living will, a plan spelling out how the bank would go through bankruptcy without sparking a panic in case of a failure, after being told in April that the plan wasn’t workable.

Now, Wells Fargo has until March to fix the problems with the bankruptcy plan or face even harsher consequences. If the plan isn’t improved to regulators’ satisfaction by then, they can limit some of the bank’s assets. If the problems aren’t addressed within two years, the regulators could begin breaking the bank up.

The bank said in a press release that it has been working on regulators’ recommendations, including by creating a program office for making the changes they demanded. “While we are disappointed with the determination issued by the agencies, we continue to be dedicated to sound resolution planning and preparedness,” it said.

Wells Fargo was the only one of five banks that didn’t do enough to improve its living will after being flunked in the spring. The regulators announced Tuesday that Bank of America, Bank of New York Mellon, JP Morgan Chase and State Street had all done enough to make their plans better.

Wall Street critics have pointed to the results of the living wills to suggest that big U.S. banks remain too big to fail and are a threat to the financial system. Some lawmakers also have questioned whether Wells Fargo’s fake accounts scandal was also evidence that it is not being managed safely.

Sherrod Brown, the Ohio senator who is the ranking Democrat on the Banking Committee, used Tuesday’s results to defend the financial regulations that were passed by a Democratic Congress and carried out by Obama’s administration.

“Today’s joint determination is a reminder that Wall Street reform is working to rein in the megabanks that crashed our economy and got bailed out by taxpayers,” he said.

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