“I have decided it is best for the company that I step aside,” Sloan said in a statement.
Wells Fargo tapped C. Allen Parker, its general counsel, to take over on an interim basis.
“It has become apparent to me” that Wells Fargo will “benefit from a new CEO and fresh perspective,” Sloan said.
‘About damn time’
Wall Street seems to agree. Wells Fargo’s shares rose 3% in after-hours trading following the news.
Warren, a Democratic presidential candidate, urged the SEC and Justice Department to investigate Sloan for his role in Wells Fargo’s problems. “And if he’s guilty of any crimes,” she said, “he should be put in jail like anyone else.”
Wells Fargo’s statement made no reference to wrongdoing by Sloan.
Wells Fargo shocked the banking industry in September 2016 when it admitted to firing 5,300 workers over several years for opening millions of fake accounts. The news forced the ouster of longtime CEO John Stumpf and led to hearings in Congress.
Laundry list of scandals
Sloan was always an odd choice to lead sweeping change at Wells Fargo because of his long roots at the bank and within its culture.
Prior to becoming CEO, Sloan served as the bank’s chief operating officer, where he oversaw the community banking division at the heart of the fake-accounts scandal. Sloan also oversaw the consumer lending division, where Wells Fargo’s auto loan problems occurred.
“He was Mr. Inside,” said William Klepper, a management professor at Columbia University. “If they wanted to make a clean cut, Sloan should have gone and they should have looked outside for a new leadership team.”
Wells Fargo has now heeded calls to find an external candidate to replace Sloan.
“Although we have many talented executives within the company,” Wells Fargo Chairwoman Elizabeth Duke said, “the board has concluded that seeking someone from the outside is the most effective way to complete the transformation at Wells Fargo.”
Duke, a former Federal Reserve official, credited Sloan with serving Wells Fargo “with pride and dedication” and for working “tirelessly” as CEO.
Source : CNN