Wells Fargo CEO Sloan steps down after rocky tenure
Wells Fargo’s CEO Tim Sloan stepped down Thursday, saying he’d become too much of a political target after a rocky tenure during which the deeply troubled bank dealt with a seemingly unending wave of scandals.
Sloan said in a statement he will give up his roles as CEO and president as well as his seat on the board, effective immediately. He will fully retire from the bank on June 30.
Sloan led the banking giant for less than three years. A longtime insider, Sloan was chosen to replace outgoing CEO John Stumpf, who resigned in October 2016 after Wells Fargo employees were found to have fraudulently opened millions of bank accounts in order to meet the company’s unrealistic sales goals.
While Sloan sought to clean up Wells’ reputation, new improprieties repeatedly came to light. The bank was found to have tacked unnecessary auto insurance onto the accounts of car loan customers. Tens of thousands of customers were unable to afford the payments and, in many cases, got their cars repossessed. The bank also foreclosed on the homes of hundreds of customers accidentally.
Those are just two examples in what became a game of scandal “whack-a-mole” at the nation’s second-largest bank.
Wells Fargo’s board of directors said it chose Allen Parker, who is currently the bank’s general counsel, as interim CEO and president. The bank also said in a statement that it will be looking at external candidates for its next CEO. Sloan was the bank’s chief operating officer and was also chief financial officer under Stumpf, and was not a popular choice as CEO with the public. While Sloan said he had no knowledge of the bank’s bad practices, many experts felt Wells needed someone from the outside to help clean up its act.
Wells Fargo shares rose 2.3 percent to $50.20 in after-hours trading.