The embattled CEO of Wells Fargo is stepping down.
Tim Sloan, who took over as chief executive of the bank in October 2016, is resigning as CEO immediately, the bank said Thursday in a release. The bank's general counsel, Allen Parker, will take over as interim CEO, and the bank is searching externally for a permanent successor.
Sloan, the three-decade Wells Fargo veteran who was supposed to clean up the mess that had claimed his predecessor, had struggled to satisfy regulators' demands to overhaul the sprawling institution.
Problems at the fourth biggest U.S. bank came to light in 2016 with the news that employees had created millions of fake accounts to meet sales quotas. Since then, more issues tied to sales practices have emerged across the bank's business lines, including mortgage, auto lending and wealth management operations. Last year, the Federal Reserve took the extremely rare step of capping the bank's asset growth after the bank found more problems with customer dealings.
Still, the news that Sloan was stepping down came suddenly.
Earlier this month, the bank said that Sloan had merited a 5 percent raise to $18.4 million for his work in 2018. And when there were news reports that the bank was considering a former Goldman Sachs executive as a potential CEO, the bank issued strong statements that Sloan had the full confidence of its board. Read more