Wells Fargo’s CEO Tim Sloan Is Stepping Down

Shares of Wells Fargo were moving higher after the company’s CEO Tim Sloan said he was going to retire.

The executive has resigned immediately after 31 years at Wells Fargo. In his place, Wells Fargo’s general counsel, Allen Parker, will take over as interim CEO, as the bank searches for a replacement.

Sen. Elizabeth Warren was thrilled with the news. Warren, who is running for president in the 2020 election, tweeted that Sloan shouldn’t get a golden parachute of compensation as he departs.

She wrote, “He should be investigated by the SEC and DOJ for his role in all the Wells Fargo scams. And if he’s guilty of any crimes, he should be put in jail like anyone else.”

Warren Buffet, whose Berkshire Hathaway is Wells Fargo’s biggest shareholder with more than 9 percent of shares, had remarked, “I’m very empathetic when he walks into a big problem at a very very large and politically sensitive institution.”

It was in January that Wells Fargo reported financial results, missing estimates in revenue.
The bank reported a profit of $1.21 a share, beating expectations. Revenue however at $20.98 billion fell short of expectations and the bank reported declines in all three of its main businesses.

Profit of $6.1 billion was down from $6.2 billion in the year ago quarter, and revenue was 5 percent lower than the year ago quarter as well. Wall Street analysts polled by Refinitiv were waiting for a profit of $1.16 a share on revenue of $21.73 billion.

Disclaimer: We have no position in Wells Fargo & Co. (NYSE: WFC) and have not been compensated for this article.