Wells Fargo chooses BNY Mellon's Scharf as third CEO in three years
) Dimon during the financial crisis of 2008. He will become Wells Fargo’s third CEO in as many years after a wide-ranging sales practices scandal.
Since then, internal and regulatory probes have discovered other issues in the bank’s businesses, resulting in billions of dollars in fines and penalties.From 2016-2018, Wells Fargo was the only bank among the top four U.S. lenders to not grow loans or deposits, according to Refinitiv data. Wells Fargo shares have fallen short of the KBW Bank Index as the board looked for a new CEO. Analysts cited uncertainly about management and future financial targets as a top concern.
While the news cheered Wells Fargo investors, analysts said it was a negative for Bank of New York Mellon. The board had said it wanted to find an outsider, a key parameter for satisfying critics in Washington. The board also initially looked the possibility of hiring a diverse candidate, especially a woman, sources have previously said.
“They really realized that they needed a competent CEO who could handle the issues at Wells and the regulators, and it didn’t matter – race, gender, those things were secondary,” one of the sources familiar with the matter said, referring to the board. At Visa, he is credited with transforming the payment giant’s technology platform and saw the stock price more than double. Scharf was tasked with reinvigorating growth at BNY, a custodian bank which executes back office operations for asset managers.
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