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.