Wells Fargo CEO Tim Sloan Suddenly Steps Down
"I have decided it is best for the company that I step aside."
Tim Sloan, CEO of Wells Fargo, will be stepping down from the role, CNN reported.
News of Sloan’s departure broke as the company grapples with a series of scandals. “It has become apparent to me that Wells Fargo will benefit from a new CEO and fresh perspective,” Sloan said of his decision.
The company’s recent struggles had prompted a series of calls from concerned politicians, including Senator Elizabeth Warren, who had been vocal about the bank’s need for new leadership.
“About damn time,” Warren tweeted on Thursday in response to the news of Sloan’s departure. “He enabled Wells Fargo’s massive fake accounts scam, got rich off it, [and] then helped cover it up.”
About damn time. Tim Sloan should have been fired a long time ago. He enabled Wells Fargo's massive fake accounts scam, got rich off it, & then helped cover it up. Now—let's make sure all the people hurt by Wells Fargo's scams get the relief they're owed. https://t.co/l7dYmBWRBo
— Elizabeth Warren (@ewarren) March 28, 2019
Sloan, a 30-year veteran of Wells Fargo, took over as CEO in 2016 while the company was facing national backlash over the notorious fake-accounts scandal. The company’s litany of recent scandals also includes charging thousands of borrowers for unnecessary auto-insurance and hundreds of homebuyers unwarranted mortgage fees. In 2018, Wells Fargo admitted a software glitch in the bank’s loan modification process caused 545 homeowners to lose their homes, according to CNN.
In the wake of Sloan’s sudden departure, Wells Fargo tapped general counsel C. Allen Parker to take over as interim CEO.
According to CNN, Wells Fargo’s shares rose 3% in after-hours trading immediately following Sloan’s announcement.
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