Bulletin: Wells Fargo&Co.'s Announcement Of An Experienced, Permanent CEO Removes Some Uncertainty, But Challenges Remain

NEW YORK (S&P Global Ratings) Sept. 27, 2019--S&P Global Ratings said today that it views positively Wells Fargo&Co.'s announcement that it named Charles Scharf as permanent CEO (effective Oct. 21), because this change reduces uncertainty about the lack of permanent leadership after the sudden departure of Tim Sloan in March 2019. Positively, Mr. Scharf has a proven track record of managing large institutions, with expertise in many facets of banking, including running a large consumer retail banking business. Mr. Scharf also has experience operating a large bank in a heavily regulated environment, which we believe is an important skillset for this role. Still, many challenges remain. Most importantly, the company needs to resolve its regulatory consent orders, including

...NEW YORK (S&P Global Ratings) Sept. 27, 2019--S&P Global Ratings said today that it views positively Wells Fargo & Co.'s announcement that it named Charles Scharf as permanent CEO (effective Oct. 21), because this change reduces uncertainty about the lack of permanent leadership after the sudden departure of Tim Sloan in March 2019. Positively, Mr. Scharf has a proven track record of managing large institutions, with expertise in many facets of banking, including running a large consumer retail banking business. Mr. Scharf also has experience operating a large bank in a heavily regulated environment, which we believe is an important skillset for this role. Still, many challenges remain. Most importantly, the company needs to resolve its regulatory consent orders, including the asset cap imposed by the Federal Reserve. Under the leadership of Allen Parker, the interim CEO, who will support the transition as a key member of the leadership team and general counsel, Wells has maintained focus...

Bulletin