Wells Fargo: Committee Questions CEO’s Ability to Reform Bank
The House Financial Services Committee has brought into question whether Wells Fargo CEO, Tim Sloan, is up to the task of running the bank in a hearing concerning historic wrongdoing.
Sloan had previously stated that the bank has taken steps to reform its corporate culture (see Wells Fargo CEO outlines change in approach to prevent future wrongdoing), however Democrats and Republicans alike have suggested that the bank has made little progress in its effort to clear up following the uncovering of illicit sales techniques.
During the hearing Committee Chairwoman, Maxine Waters, suggested that the bank be broken up as it is “too big to manage”, a call that was supported by some colleagues. However, Kentucky Republican, Andy Barr, submitted that the issue within Wells Fargo “was not a matter of size, it was a matter of culture”.
The Office of the Comptroller of the Currency similarly issued a statement during the hearing that it is “disappointed” with the bank’s ability to execute “effective governance and a successful risk management program”.