Wells Fargo CEO abruptly resigns after numerous scandals
On Thursday, Wells Fargo announced CEO Tim Sloan’s resignation — the 2nd CEO in the last 2 ½ years who failed to keep their bank’s miserly hand out of the cookie jar.
Uncle Fargo has been responsible for a whole assortment of scandals in recent years: Like when its bankers created deposit and credit card accounts for millions of customers without their knowledge — a doozy that cost them $185m in fines from the Consumer Financial Protection Bureau in 2016.
To WF, $185m ain’t no thang but a chicken wing
Trouble’s been building for Wells Fargo as of late: In 2018, ol’ Wellsy was hit with a $1B fine for overcharging customers for mortgages and auto loans.
But the costly malfeasances date back to before the financial crisis, when the company began originating and charging customers for made-up overdue mortgage payments to ensure certain interest rates (this reveal ousted WF’s previous CEO, and promoted Sloan).
Last month, Sloan testified before Congress, assuring the House that the bank has put its shady practices behind them. Then, 2 days later, the company revealed in a regulatory filing that Sloan would be getting a $2m bonus for 2018 (the nail in his coffin).
Fargo’s stock jumped
But, Fargo stock soared 3.08% following the announcement of Sloan’s resignation (and the company’s decision to hire its next CEO outside of the company).
With another ill-intentioned CEO ousted, the public wants to believe one of the world’s most powerful banks still has a chance to correct the wagon.