Wells Fargo CEO Tim Sloan is retiring, and shares jump

Investing

The CEO of Wells Fargo is stepping down.

Tim Sloan, who took over as chief executive of the bank in 2016, will retire, the bank said in a press release Thursday. Allen Parker will take over as Interim CEO and president.

Wells Fargo shares jumped 2.6 percent in extended trading Thursday following the announcement.

You Might Like

Shares of the bank have struggled amid the fallout from the sales practices scandal and scrutiny from political leaders. Over the last five years, the stock is flat, compared to a near 70 percent jump in J.P. Morgan Chase shares and a 40 percent move higher for the whole S&P financial sector.

Sloan’s departure follows repeated calls from lawmakers for the CEO to step down. In October, Sen. Elizabeth Warren sent a letter to Federal Reserve Chairman Jerome Powell calling on the Fed to maintain its growth cap on Wells Fargo until the bank replaces Sloan.

In an interview with CNBC earlier this year, he argued that he was the best man for the CEO job. He also confirmed that the Fed’s growth cap will remain in place until the end of 2019 in Wells Fargo’s most recent earnings report.

Sloan guided the bank through the aftermath of sales scandals that have resulted in more than $2 billion in fines, and growth restrictions imposed by the Federal Reserve.

Asked Thursday whether he supported Sloan, Berkshire Hathaway CEO Warren Buffett told CNBC’s Becky Quick “yes, 100 percent.” Buffett says that’s because he doesn’t want the job. Berkshire Hathaway is Wells Fargo’s biggest shareholder, with more than 9 percent of shares according to FactSet.

This story is developing. Please check back for updates.

Articles You May Like

Iran and EU herald fresh talks to revive nuclear accord in ‘coming days’
Bank of Russia Accelerates Schedule for Digital Ruble Project
Stock futures rise as Wall Street looks to snap losing streak
UK financial services co-operation with EU hit by Northern Ireland row
Mercado Pago Extends Its Cryptocurrency Services in Brazil

Leave a Reply

Your email address will not be published.