Established in 1867. Re-established in 2018... Digressed in 2019. Tim Sloan became Wells Fargo's CEO 2.5 years ago to fix its problems. Now, a month after he testified to Congress that he wasn't going anywhere, he is.
Here's a small sampling... of the dozen+ scandals Sloan was dealing with. The diversity of violations is almost impressive:
- Fake accounts: Over 2016 and 2017, insane sales quotas pushed Wells Fargo associates to open up to 3.5M fake bank accounts and 500K fake credit cards.
- Failed tests: The Federal Reserve makes banks prove they're fit and following the rules. Wells failed Fed tests in 2016, 2017, and 2018.
- And more: Wells has been sued and/or fined during Sloan's tenure for discrimination, overcharging customers, poor compliance, and abusive car and home loans.
Banks are living their best lives right now... and that makes Wells' situation look even worse. Its stock is at the same level it was 5 years ago. Meanwhile, JPMorgan's is up 67% and Bank of America is up 62%. The fines didn't just hurt their financials — They distracted Wells execs from investing in the strategies that are now powering its competition.
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