Wells Fargo is supposedly looking for a replacement for Tim Sloan and Federal Reserve still won't lift growth cap on Wells Fargo even after settlement of account scandal fraud.
Tim Sloan Replacement
https://www.reuters.com/article/us-wells-fargo-ceo/wells-fargo-in-talks-with-ex-goldman-exec-schwartz-to-be-next-ceo-ny-post-idUSKCN1R21RR
(Reuters) - Wells Fargo & Co’s board is in talks with Harvey Schwartz, the former president and co-chief operating officer of Goldman Sachs Group Inc, to take over as the bank’s chief executive, the New York Post reported on Thursday, citing people briefed on the discussion.
A Wells Fargo spokesperson told Reuters that there was “no validity” to rumors the bank was in talks with potential candidates for the CEO position.
Since Tim Sloan took over as the scandal-plagued bank’s CEO in 2016, politicians and analysts have repeatedly questioned whether he was the right person to turn Wells Fargo around.
The bank’s board has consistently defended Sloan, saying his deep knowledge of Wells Fargo was an asset. In September the bank’s chair, Betsy Duke, shot down a similar NY Post report that the board was seeking to replace Sloan with former Goldman Sachs executive and Trump adviser Gary Cohn.
Wells Fargo on Thursday reiterated Duke’s statement from last year.
“Rumors that Wells Fargo’s Board of Directors reached out to potential CEO candidates are completely false,” Duke said. “CEO Tim Sloan has the unanimous support of the board, and this support has never wavered.”
Shares of Wells Fargo pared some losses to trade down 1.5 percent at $49.62. The stock was earlier down 2.4 percent.
Schwartz is up against another serious candidate for Sloan’s job, but that person’s identity could not immediately be learned, the newspaper reported, citing one source close to the situation.
Federal Reserve not Removing Growth Cap after fraud account settlement
https://www.investmentnews.com/article/20190321/FREE/190329987/wells-fargo-hits-more-bumps-as-it-tries-to-move-past-scandals
Wells Fargo hits more bumpsas it tries to move past scandals
Judge puts off approving a settlement related to bank's fake accounts, and Fed chairman Powell says Fed not ready to lift growth ban
A federal judge said he's not ready to sign off on Wells Fargo & Co. collecting $240 million in insurance payments from 20 bank officials in connection with the lender's unauthorized-accounts scandal — even though the settlement was touted as the largest-ever of its kind.
That came just hours after Federal Reserve Chairman Jerome Powell reiterated Wednesday that the regulator won't lift its growth ban on Wells Fargo until problems are addressed, specifically related to the bank's risk-management approach.
While the attorneys who drafted the lawsuit settlement said its total value is $320 million because it includes corporate governance reforms, the San Francisco judge said he can't determine whether the accord is fair to the shareholders who sued the bank's officers and directors without knowing how much legal exposure they would face if the case went to trial.
He directed the shareholders' attorneys to file more information by April 11 and postponed a settlement approval hearing.
The comments from Mr. Powell echo sentiments made public by the Office of the Comptroller of the Currency last week during Wells Fargo CEO Tim Sloan's hearing in front of the House Financial Services Committee. OCC spokesman Bryan Hubbard said the office is disappointed with the bank, citing an "inability to execute effective corporate governance and a successful risk management program."
Rebukes from two of Wells Fargo's most important regulators in as many weeks show that Mr. Sloan is not yet convincing the right people that he's turned the bank around. Shares of Wells Fargo fell 2% Wednesday, their worst drop in over a month.