Security & Fraud

Wells Fargo To Slash 69 Executive Roles; Faces Calls For Board To Be Removed

Wells Fargo, the embattled national bank, is gearing up to slash 69 executive positions in its retail unit. The sector been struggling since news broke last year that it created numerous fraudulent accounts for unwitting customers.

According to a report in Reuters, which cited Wells Fargo spokesman Paul Gomez, some of the executives will retire with full benefits, others may find new roles within the bank and some may leave entirely.

“We have just completed the process of consolidating the regional president and area president roles into a new position [of] region bank president,” said Mary Mack, senior executive vice president for community banking, in an internal memo, reported Reuters. The retail banking business will see 91 region bank presidents after the overhaul.

The continued restructuring of the retail unit comes as the bank is facing more pressure from lawmakers. U.S. Senator Elizabeth Warren asked Federal Reserve Chair Janet Yellen last week to remove members of Wells Fargo’s board. The request comes in response to complaints that the bank improperly charged customers for auto insurance.

In a letter obtained by Reuters, Warren said further improper, fraudulent actions by the bank showed there were “deep risk management problems.” The lawmaker called for all board members who served from 2011 to 2015 to be removed from the board of directors at the bank.  

In a report late last week, The New York Times reported more than 800,000 Wells Fargo customers were charged for auto insurance they did not take out.

But Warren isn’t the only one calling for change in the wake of what could be a new scandal for Wells Fargo. Reuters also reported New York City Comptroller Scott Stringer requested the bank replace chairman Stephen Sanger in light of the auto insurance account openings. Stringer told Reuters the board at the bank needed to be overhauled.

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