Wells Fargo hires New York Mellon’s Scharf as new CEO

NEW YORK (AP) – Wells Fargo named its third Chief Executive Officer (CEO) in as many years as it attempts to move on from a series of scandals.

The bank said on Friday that Chief Executive of the Bank of New York (BNY) Mellon Charles Scharf will take over for C Allen Parker, who has led Wells Fargo since March. Parker will remain in place until Scharf joins the bank on October 21.

Wells Fargo has been trying to recover from scandals starting in 2016 when it admitted its employees opened millions of fake checking accounts to meet sales goals.

The San Francisco-based bank has been fined repeatedly, including a record USD1 billion penalty in 2018 levied by federal regulators for failures in its mortgage lending businesses and for selling auto loan customers insurance policies they did not need.

More importantly, the Federal Reserve last year stepped in and handcuffed Wells’ ability to grow its business until the bank proves it has gotten its house in order. Tim Sloan, who had been Wells Fargo’s CEO since the scandals originally broke, stepped down after what many considered a poor performance defending the bank in front of Congress in March.

Scharf has been CEO of the decidedly uncontroversial BNY Mellon since July 2017 and previously was the CEO of Visa.

Bank of New York Mellon chairman and CEO Charles Scharf testifies before the United States (US) House Financial Services Committee during a hearing on Capitol Hill in Washington. PHOTO: AP