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Two senior managers from
Wells Fargo
& Co. took leave of the bank after the Office of the Comptroller of the Currency quoted them in regulatory warnings, said people familiar with the subject.
Wells Fargo announced Wednesday that the leave granted to Hope Hardison, chief executive officer and David Julian, lead auditor, resulted from ongoing regulatory reviews of his retail bank's sales practices. He said the leaders would no longer be part of its operating committee.
The OCC recently sent individual letters to Ms. Hardison and Mr. Julian expressing concerns about their inability to supervise problems in the bank, people familiar with the subject said. It is rare for people to receive such letters, they said.
Ms. Hardison and Mr. Julian did not immediately respond to requests for comment.
The regulator had sent the bank a similar letter last year, had already reported the Wall Street Journal. In this letter, the OCC indicated that Wells Fargo had deliberately harmed its customers and repeatedly failed to resolve the issues. A few months later, the bank settled $ 1 billion with the BCC and the Bureau of Consumer Financial Protection in connection with unjustified charges to mortgage customers and auto lenders.
Wells Fargo has spent the last two years coping with the revelations that branch employees potentially opened millions of fake accounts without client authorization.
Hope Hardison
Photo:
Wells Fargo
In the aftermath of the sales scandal, problems and investigations arose in business units across the bank, including wealth management and foreign exchange.
Wells Fargo is under pressure to show that it addresses the concerns of regulators. Wednesday's announcement may indicate that the bank is still struggling with problems with consumer sales practices and that regulators are not satisfied with the progress made in addressing these issues.
"Over the last two years, we have focused more on the customer base, we have made significant changes to the board and the board, strengthened risk management and controls, simplified the organization and invested in the members of our team, "said General Manager Timothy Sloan. "We remain committed to making things better for customers and building a better Wells Fargo."
Ms. Hardison was Human Resources Manager for Wells Fargo until the end of 2015, when she became Executive Director. She was among the leaders mentioned in the April 2017 report of the bank's board of directors on the scandal of commercial practices.
At the end of September, the American publication American Banker ranked Ms. Hardison among its top 10 women to watch in the banking sector. Banks must appoint their leaders and often spend weeks gathering the necessary documents for the appointment process.
According to the bank, Ms. Hardison has championed her new model "One Wells Fargo" which is "designed to put the company's property above the good of any business," according to the article.
Kimberly Bordner, currently executive director of audit, will become interim chief auditor of the company. The company has announced that it will conduct an internal and external search for the position.
The bank said David Galloreese, head of human resources, would report to Sloan and join the operations committee. Jim Rowe, Stakeholder Relations Manager, will also report to Sloan.
The members of the company's operating committee will assume additional responsibilities in the main office of the administration, said Wells Fargo.
Write to Emily Glazer at [email protected]
Published in the print edition of October 25, 2018 under the title "Wells Fargo puts two officers on leave".
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