Wells Fargo share price down 2% after CEO Tim Sloan resigns

Wells Fargo share price is down after embattled chief executive officer, (CEO), Tim Sloan, abruptly resigned after 2 years with the company. Sloan was criticised for his leadership during the bank’s many financial scandals.

Why is Tim Sloan resigning from Wells Fargo?

Sloan is retiring after a series of scandals that plagued the financial institution. The bank had to reimburse thousands of customers $575 million after starting fraudulent accounts in their names. The company also had a two-day outage that kept clients from accessing their funds. Sloan said in a statement that he would step aside so the organisation can move on from the infamous events.

‘I have decided it is best for the company that I step aside It has become apparent to me that our ability to successfully move Wells Fargo forward from here will benefit from a new CEO and fresh perspectives,’ said Sloan in a statement.

Sloan was criticised often by US politicians like Congresswoman, Maxine Waters. She said Sloan should be ‘shown the door’ for receiving a $2 million bonus in the wake of the scandals. Senator, Elizabeth Warren, also wanted Sloan to resign and expressed her approval of the decision on Twitter.

‘About damn time. He enabled Wells Fargo's massive fake accounts scam, got rich off it, & then helped cover it up,’ tweeted Warren.

What’s next for Wells Fargo?

The financial institution’s chair, Elizabeth Duke, noted that Wells Fargo’s next CEO will likely come from outside the organisation so the bank can start over with customers.

‘Although we have many talented executives within the company, the board has concluded that seeking someone from the outside is the most effective way to complete the transformation at Wells Fargo,’ said Duke.