Breaking News Emails
Get breaking news alerts and special reports.
By Alex Johnson
For the second time in 2½ years, a chief executive of Wells Fargo & Co. pulled out abruptly on Thursday when the scandalous bank took another staff by putting their problems behind it.
Tim Sloan became CEO in October 201[ads1]6, followed by John Stumpf after the company was hit with the first of what would be billions of dollars in penalties for having opened millions of bank accounts without client's authorization.
Just two weeks ago, Wells Fargo Sloan awarded a 5 percent wage increase to $ 18.4 million a year. But the answer from lawmakers and financial analysts to Sloan's congressional evidence of the company's problems that week was very critical, and Thursday's Wells Fargo chairman Betsy Duke Sloan said "would best position the company for success."
"About Because Elizabeth Warren of Massachusetts, a democratic presidential candidate who has long beat Wells Fargo, tweeted Thursday afternoon .
" Tim Sloan should have been fired a long time ago, "Warren said. He activated Wells Fargo's massive counterfeit fraud accounts, got rich in it, and then helped cover it. Now – let's make sure that all the people who are harmed by Wells Fargo's scams get the relief they owe. "Wells Fargo said Sloan, 58, would immediately leave his seat on the board and pull aside as CEO and President, he will withdraw from the company at the end of June, said it.
Duke said in a statement that Allen Parker, Wells Fargo's Executive Vice President and General Adviser, would replace Sloan, but she made it clear that he did not was "a long-term solution, saying that" seeking someone from the outside is the most effective way to complete the transformation at Wells Fargo. "
Prior to joining Wells Fargo in 2017, Parker, 64, was president of Cravath, Swaine & Moore, one of the country's most prominent law firms. His temporary deal comes at a time when Wells Fargo has revealed that it has paid billions of dollars in fines and other penalties, and that it operates under 14 separate regulatory regulations with regulators.
Many of the decrees are linked to the systematic creation of sham bank accounts and other shady practices, which led the Federal Reserve a little more than a year ago to put an unprecedented regulatory capsule on the company's growth, citing "widespread consumer abuse."