89.8 F
Fort Worth
Friday, August 14, 2020
Banking Wells Fargo hires New York Mellon's Scharf as its new CEO

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

Other News

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

Tradition stymied: A year unlike any since WWII for Augusta

The Masters is so intertwined with Augusta, they added an extra day to spring break.You see, the first full week of April isn't just...

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

The bank said Friday that Charles Scharf, chief executive of the Bank of New York Mellon, 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 Oct. 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 $1 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 Bank of New York Mellon since July 2017 and previously was the CEO of Visa.

BNY focuses almost entirely on being what’s known as a custodial bank — holding large amounts of assets on behalf of clients. It has no consumer banking business, which is Wells Fargo’s core franchise.

BNY’s quiet nature was on display earlier this year, when several of the big bank CEOs were dragged in front of Congress to discuss how they were doing 10 years after the financial crisis. While members of Congress went after JPMorgan’s Jamie Dimon and Goldman Sachs’ David Solomon, they mostly ignored Scharf and the CEO of his primary competitor, State Street.

Scharf will receive a hefty paycheck for joining Wells. The bank says he will earn a base salary of $2.5 million, plus a guaranteed $5 million bonus and $15.5 million in stock awards that will vest over several years.

“Charlie is a proven leader and an experienced CEO who has excelled at strategic leadership and execution and is well-positioned to lead Wells Fargo’s continued transformation, said Wells Fargo Board Chair Betsy Duke in a prepared statement.

- Advertisement -
- Advertisement -

Latest News

Capital One fined $80 million in data breach

WASHINGTON (AP) — The U.S. Treasury Department has fined Capital One $80 million for careless network security practices that enabled a hack...

Business sustainability during the new ‘Never Normal’

Nikole Dickman and Jessica Candler Given all of the changes that have occurred this year, analysts are naming the...

Banks providing lifeline to small business during pandemic

Banks of all sizes, from small community institutions to regional and national banks, have...

Dallas company part of Aug. 10 IPO slate

Initial public offerings scheduled to debut next weekNEW YORK (AP) — The following is a list of initial public offerings planned for...

Fort Worth firm enters California market

Fort Worth-based Higginbotham has added California to its footprint. Higginbotham, one of the largest independent insurance firms in the...