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Sloan will face skeptical legislators when he testifies before the House Financial Services Committee on Tuesday. He will try to convince members of the House that Wells Fargo has become a "better bank", according to prepared remarks.
On Monday, the bank released a progress report detailing its "transformation" since September 2016. He highlighted the upheavals of the company's management and the new measures taken to reduce the risks.
"While we still have work to do, we have worked hard over the past two years to address the root causes of our mistakes, patch team members and customers, and lay the groundwork. from a better company, "Sloan told a press release.
For Sloan, who has been in charge for more than two years, the stakes of the audience are considerable.
The Federal Reserve has not yet removed the unprecedented asset cap that it had placed on Wells Fargo in early 2018 for "widespread abuse of consumption", which prevented the bank to develop oneself.
The hearing will provide a better understanding of the political challenges that Wells Fargo still faces, even if little remains of substance.
"If the bank receives support, it could suggest that the political environment is improving enough for the Federal Reserve to raise the asset ceiling towards the end of the year," said Monday the Cowen analyst, Jaret Seiberg, in a note. "In the absence of political support, the risk increases that the cap remains in place until 2020".
Seiberg points out that Waters represents Los Angeles, where the controversy over false accounts has begun. As a result, she may feel the need to be combative with Sloan on behalf of her constituents, he said.
"If Sloan manages to appease Waters to the audience, this would be a major step for the bank to overcome these difficulties," Seiburg said. "But if both men embark on a verbal fight, the bank will likely face at least 18 months of further political attacks."
– Matt Egan from CNN Business contributed to this report.
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