Well Fargo & Company (NYSE: WFC) announced that its President and CEO Tim Sloan resigned from his positions and as Board member effective immediately. He will be retiring from the company effective June 30, 2019.
Following the company announcement on Thursday, the stock price of Wells Fargo went up. During the extended trading, WFC shares were up more than 2 percent to $50.19 each.
Sloan is Wells Fargo veteran, who served the bank for more than 31 years. He took over as CEO in October 2016 when John Stumpf retired. At he time, the bank was in the middle of an account fraud scandal, in which its employees allegedly opened millions of bank and credit card accounts on behalf of clients without their consent.
Since then, Well Fargo have been embroiled in many other problems associated with its auto lending, mortgage, and wealth management businesses. Last year, the bank agreed to pay $1 billion in penalty to settle is regulatory violations related to its auto lending and mortgage businnesses. It also agreed to pay $575 million to settle a multistate investigation into its misconduct involving its sales practices, mortgage-rate lock fees, and Collateral Protection Insurance on auto loans.
