By Nick Baum
FRIDAY – 9/27/19
The fourth largest bank in the US has announced its new CEO after months of struggle in finding a figure willing to step up. Charles Scharf, the former CEO of both Visa and Bank of New York Mellon, will take over as CEO of Wells Fargo effective October 21, becoming the successor to current CEO Tim Sloan who resigned in March after 31 years as CEO.
Wells Fargo has encountered multiple scandals in the past three years, the most notorious of which coming in 2016 when they created 1.5 million fake deposit accounts and over 500,000 credit cards for costumers of Wells Fargo without their consent. The scandal costed the company over $185 million in fines.
More fake accounts were created in 2017, and that paired with the Federal Reserve restricting certain growth of the company has lead to plunging stocks in the last two years. Currently the bank’s general counsel, Allen Parker, is interim CEO and will stay in his position until Scharf steps in next month.
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