Wells Fargo can't outrun its scandals

The smartest insight and analysis on the bank's perennial crisis, rounded up from around the web

Timothy Sloan.
(Image credit: Chip Somodevilla/Getty Images)

The smartest insight and analysis, from all perspectives, rounded up from around the web:

The abrupt retirement of Wells Fargo CEO Tim Sloan last week left the country's fourth-largest bank scrambling, said Deon Roberts at the Charlotte Observer. Wells Fargo's 2016 fraud scandal — in which employees were pressured into opening millions of fake deposit and credit ­accounts — continues to haunt the company, and last year the Federal Reserve put a cap on Wells Fargo's growth after additional reports of consumer abuse. Sloan had just testified on Capitol Hill, and clearly failed to mollify congressional critics. "No sooner had the bank announced Sloan's departure than consumer advocacy groups and lawmakers pounced," calling for further sanctions and "a culture shift." The bank's reputation is now so damaged that Wells faces calls to "change the bank's name and rebrand itself" to regain trust. The bank now might as well put up a Help Wanted sign: "New executive to clean up radioactive mess," said Emily Flitter and Stacy Cowley at The New York Times. The board chair said the company is going to try to recruit a new chief executive from outside, with a clean slate. But "persuading that person to take the job" will be a difficult task, considering the bank still faces massive litigation, more than a dozen federal investigations, "a largely demoralized workforce," and another round of berating before the House Financial Services Committee later this month.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us