April 11, 2021

The CEO and President of Wells Fargo announces its withdrawal

The CEO and President of Wells Fargo announces its withdrawal



The CEO and president of Wells Fargo, Tim Sloan, has decided to retire and will leave his positions immediately, announced Thursday the bank based in San Francisco (United States).

Sloan's departure had been claimed in recent months by several lawmakers in response to mismanagement and scandals involving the entity, especially the opening of false accounts that Wells Fargo employees carried out without authorization or knowledge of their customers to meet the business objectives set.

A little more than a year ago, the Federal Reserve (Fed) of the United States decided to temporarily freeze any expansion of the banking giant after finding "generalized and persistent misconduct".

Sloan will be replaced on an interim basis by Allen Parker, the company's legal counsel, while the banking group seeks a definitive successor outside the home.

In a statement, the so far chief executive of Wells Fargo said he has decided to leave office because he believes the firm needs a new leader with "fresh perspectives."

"I have decided that it is the best thing for the company to do to me aside and dedicate my efforts to support an effective transition," said Sloan, who will continue as an employee of Wells Fargo until June 30, but no longer exercise their current responsibilities.

Sloan had been working for the bank for 31 years and had been CEO since October 2016, when he had replaced John Stumpf, who resigned over the scandal of unauthorized accounts.

The markets reacted quickly to the announcement and the shares of Wells Fargo rose 2.59% in the post-closing operations of the New York Stock Exchange, after ending the session with a rise of 0.66%.

The securities of the entity have stagnated in recent years, in contrast to the strong rises experienced in the stock market in that period by some of its major competitors.

On the other hand, the head of operations of Morgan Stanley, Colm Kelleher, also announced on Thursday his exit from the effective company on June 30 after having worked for the investment banking company since 1989.

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