Wells Fargo CEO Tim Sloan is retiring
- Tim Sloan is stepping down as CEO of Wells Fargo, effective immediately.
- Allen Parker, who was previously the bank's general counsel, will serve as interim CEO.
- The company has started a search for a new CEO.
Wells Fargo CEO Tim Sloan is stepping down from his role, effective immediately.
He will also retire from the company effective June 30, the firm said in a press release out after Thursday's closing bell. Sloan had been in senior management positions at the bank since 2011.
Wells Fargo shares were up 2.5% following the news.
Allen Parker, who was previously the bank's general counsel, will serve as interim CEO and president effective immediately. He will also take Sloan's vacated seat on the company's board. The company will begin its search for a new CEO and president.
"Tim Sloan has served this Company with pride and dedication for more than 31 years, including in his role as CEO since October 2016," Wells Fargo board chair Betsy Duke said in the press release.
"He has worked tirelessly over this period for all of our stakeholders in the best long-term interest of Wells Fargo. His decision, and today's announcement, reflect that commitment and his belief that a new CEO at this time will best position the Company for success."
Sloan's departure from the bank comes following a slew of scandals over the past several years that occurred while he was in senior management positions.
In September 2016, it was discovered that Wells Fargo improperly opened 1.5 million deposit accounts and over 500,000 credit-card accounts. Six months later, the bank said it had opened a total of 3.5 million accounts that were unauthorized.
US regulators restricted the bank's size after it failed the Fed's "living will" test in December 2016. And in February 2018, it was announced that the Fed would restrict its growth in response to "widespread consumer abuses and compliance breakdowns."
But that's not all. In March 2018, it was announced that the Department of Justice was investigating the bank's wealth management division for "inappropriate referrals and recommendations." And a month later, Wells reached a $1 billion settlement for auto-loans and mortgages practices.
Wells Fargo was up 6.5% this year through Thursday, but down more than 25% from the March 2018 peak.
