Daily Archives: October 13, 2016

Just Four Months Ago, New Wells Fargo Chief Said No Changes in Sales Strategy

And the new Wells Fargo CEO may want to rethink what he said 4 months ago…

Wells Fargo’s new CEO, Tim Sloan, told a leading industry trade publication in June 2016 that the bank’s aggressive sales culture and “cross-selling” targets was perfectly appropriate and “is not going to change.” This was years after top executives at the bank knew that thousands of their employees were were responding to those sales targets by generating fake accounts.

Sloan is replacing John Stumpf, who stepped down on Wednesday amid the ongoing scandal, for which the company has been fined $185 million by federal regulators and faces investigations from the Departments of Justice and Labor.

Before the fines were announced, Sloan, who was groomed to replace Stumpf for years, sat down with American Banker to talk about the company on June 16. By that point, the Los Angeles Times had already uncovered evidence of fake accounts, and the City Attorney of Los Angeles had filed suit over the allegations (the suit would eventually be folded into the larger settlement). The L.A. Times also had disclosed that the bank was under federal investigation.

Read on.

Thanks Elizabeth!:Wells Fargo CEO John Stumpf retires

Let’s hope Jamie Dimon is next on the list..And Stumpf needs to save some of his balloon retirement package because his nightmare is not over legally.

SAN FRANCISCO, October 12, 2016

Wells Fargo & Company (NYSE: WFC) announced today that Chairman and Chief Executive Officer John Stumpf has informed the Company’s  Board of Directors that he is retiring from the Company and the Board, effective immediately. The Board has elected Tim Sloan, the Company’s President and Chief Operating Officer, to succeed him as CEO, and Stephen Sanger, its Lead Director, to serve as the Board’s non-executive Chairman, and independent director Elizabeth Duke to serve as Vice Chair.  Sloan also was elected to the Board.

Sloan’s appointment to CEO and election to the Board are effective immediately. He will retain the title of President.

Sanger said, “John Stumpf has dedicated his professional life to banking, successfully leading Wells Fargo through the financial crisis and the largest merger in banking history, and helping to create one of the strongest and most well-known financial services companies in the world. However, he believes new leadership at this time is appropriate to guide Wells Fargo through its current challenges and take the Company forward. The Board of Directors has great confidence in Tim Sloan.  He is a proven leader who knows Wells Fargo’s operations deeply, holds the respect of its stakeholders, and is ready to lead the Company into the future.”

Stumpf, a 34-year veteran of the Company, joined Wells Fargo in 1982 as part of the former Norwest Bank, becoming Wells Fargo’s CEO in June 2007 and its chairman in January 2010.

“I am grateful for the opportunity to have led Wells Fargo,” Stumpf said. “I am also very optimistic about its future, because of our talented and caring team members and the goodwill the stagecoach continues to enjoy with tens of millions of customers. While I have been deeply committed and focused on managing the Company through this period, I have decided it is best for the Company that I step aside. I know no better individual to lead this company forward than Tim Sloan.”

Read on.