Wells Fargo CEO Tim Sloan to step down 'immediately'

C. Allen Parker will take over as interim CEO and president of Wells Fargo. File

C. Allen Parker will take over as interim CEO and president of Wells Fargo. File

"It has become apparent to me that our ability to successfully move Wells Fargo forward from here will benefit from a new CEO and fresh perspectives", Sloan said in a statement. Before he was made chief executive in October 2016, replacing disgraced former CEO John Stumpf, Sloan was the Wells Fargo chief operating officer and before that chief financial officer. "It's a hard decision step down; I can assure you of that".

Sloan has had to contend with hostile lawmakers who felt he was not doing almost enough to fix the deep-rooted malaise at the 166-year old bank. "That is the person we want".

The search committee will meet for the first time on Friday, Duke said.

"Given Mr. Sloan's track record, the Board of Directors can not comply with the Federal Reserve's requirements for removing the growth cap if it permits Mr. Sloan to continue running the company", she said in a letter previous year.

Wells Fargo's ongoing bad behavior drew the ire of politicians on both sides of the aisle.

Wells Fargo has been fined more than $1 billion in recent years for scandals involving its phony accounts, insurance and mortgage services.

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It is not yet clear what was the final straw for Sloan. Fed Chair Jerome Powell together with the Office of the Comptroller have expressed alarm at the "deep problems" at the bank and the lack of sufficient measures to address them.

"(Wells Fargo) was going be a punching bag through 2020 if he didn't step down", said Kyle Sanders, a bank analyst with Edward Jones who covers Wells Fargo. "Once regarded as among the nation's best-run financial institutions, Wells Fargo admitted in 2016 that it had for years opened what may have been millions of fictitious accounts in customers' names, improperly charged them fees and sold them unwanted products". "Why should Wells Fargo continue to be the size that it is?" But the bank's insularity proved burdensome in recovering from the scandal.

Sloan told investors Thursday on a conference call that the target on his back from politicians was one of the reasons he chose to step down. Sherrod Brown of OH tweeted Thursday.

"Last month, Mr. Sloan was repeatedly cut off as he tried to speak at a hearing of the House financial services committee". "He has served as the company's general counsel since March 2017 after joining the bank from an outside law firm", Cravath, Swaine & Moore, Jim Puzzanghera reports for the Los Angeles Times. At the time he was the only one of 11 top executives who had not been at the bank during the scandal.

Sloan earned props from his own board for tightening internal oversight, unearthing and fixing many past problems. They've said a longtime insider couldn't be counted on to clean up scandals across its branch network and other divisions.

And a few days later, the company revealed in a filing to a government regulator that Sloan would be getting a $2 million bonus for 2018.

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