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Wells Fargo names Charles Scharf as Chairman
Wells Fargo names Charles Scharf as Chairman

United News of India

time01-08-2025

  • Business
  • United News of India

Wells Fargo names Charles Scharf as Chairman

New Delhi, Aug 1 (UNI) Wells Fargo & Company, a US-based financial services giant, is set to give the additional charge of Chairman to its current CEO, Charles Scharf. Reportedly, the move is taken by the bank as an award for Scharf's major role in building the bank's image. Charles Scharf is an American business executive and is currently serving as the CEO and President of Wells Fargo. Scharf has previous experience at Visa Inc. and BNY. He has done his Executive MBA at the Stern School of Business. Steve Black (Current Chairman, Wells Fargo) said, ' We are thrilled to recognize Charles' significant contributions to Wells Fargo and are planning to appoint him as the chairman of the board. We also plan to appoint a lead independent director to maintain independent board leadership.' 'The special equity award is designed to acknowledge Charles' role in leading Wells Fargo through an unprecedented transformation, creating shareholder value and positioning the company for the future,' Black added. The statement reflected the board's desire to retain Charles Scharf as the CEO of the company due to its previous transformative initiatives for the future success of the company. Charles Scharf also welcomed the decision of the board and highlighted his intent to contribute to organizational development during the current momentum. UNI SAS GNK

Wells Fargo profit rises on lower bad loan provisions
Wells Fargo profit rises on lower bad loan provisions

RTÉ News​

time15-07-2025

  • Business
  • RTÉ News​

Wells Fargo profit rises on lower bad loan provisions

Wells Fargo's profit rose in the second quarter as it set aside less money to shield for potential bad loans. But the San Francisco, California-based bank today cut its expectation for annual interest income. Wells Fargo expects its interest income to be roughly in line with 2024 level of $47.7 billion, it said. In April, the bank had forecast NII growth would be at the low end of the 1% to 3% range. Analysts and investors were skeptical about Wells Fargo's ability to meet its targets for interest income after a slow start to 2025. The bank had expected its net interest income (NII), or the difference between what it earns on loans and pays out on deposits, to be relatively stable in the first half of 2025, with more growth in the second half. Heading into the results, some analysts had expected the bank to cut its NII forecast as elevated interest rates weighed on demand from borrowers. Meanwhile, provision for credit losses fell to $1.01 billion in the quarter from $1.24 billion a year ago. Consumers and businesses have continued to repay loans, allaying concern that shifting US trade policies would trigger a recession. Still, uncertainty around the economic outlook persists. Wells Fargo executives have previously said their efforts to tighten credit over the past couple of years should help the bank to weather a potential economic downturn. The fourth-largest US lender's net income was $5.49 billion, or $1.60 a share, in the three months ended June 30, it said today. That compares with $4.91 billion, or $1.33 a share, a year earlier. Last month, the US Federal Reserve lifted Wells Fargo's seven-year-long $1.95 trillion asset cap, allowing the bank to pursue unimpeded growth. Wells Fargo has been focused on fixing its regulatory problems in recent years. While it laboured under a $1.95 trillion cap asset cap, rivals expanded. With the asset cap lifted and regulatory issues largely in the rearview mirror, Wall Street analysts expect Wells Fargo to attract more investor interest as its profits grow. CEO Charles Scharf has said the bank will expand carefully. Wells Fargo is likely to beef up its wholesale businesses by adding market share in commercial banking, corporate and investment banking and trading. The bank has closed seven regulatory punishments, known as consent orders, this year and 13 since 2019. It still has one remaining consent order from 2018.

Fed Removes Shackle Imposed on Wells Fargo After Series of Scandals
Fed Removes Shackle Imposed on Wells Fargo After Series of Scandals

New York Times

time03-06-2025

  • Business
  • New York Times

Fed Removes Shackle Imposed on Wells Fargo After Series of Scandals

In early 2018, the Federal Reserve hit Wells Fargo with an unprecedented penalty for a yearslong record of misconduct: an asset cap that prevented the bank from growing. On Tuesday, the Fed lifted that restriction. Wells Fargo has improved its internal governance and risk management enough to be released from its fetters, the regulator said. The end of the asset cap reflects the bank's 'focused management leadership, strong board oversight and strict supervision,' said Michael S. Barr, a Fed governor who recently ended his service as the board's vice chair for supervision. He said the three improvements 'will need to continue for the firm to have a sustainable approach.' Wells Fargo, based in San Francisco, hailed the end of a sanction that has shadowed the bank for more than seven years. Charles W. Scharf, the bank's chief executive, called it 'a pivotal milestone' in the company's transformation. 'We are a different and far stronger company today because of the work we've done,' he said. Wells Fargo said it would grant nearly all of its 215,000 full-time workers an award valued at $2,000. For most, the prize will come in the form of a restricted stock grant, which the company described as a way to give its workers 'an opportunity to own a part of Wells Fargo and hopefully benefit from our future success.' Mr. Scharf took on the top job at Wells Fargo in 2019, after the bank's series of scandals toppled two chief executives. In 2016, federal regulators and local officials in California revealed that the bank's employees had for years created bank accounts for unwitting customers, without their consent, to meet aggressive sales goals. That discovery was followed by others, including mistakes that led to improper home foreclosures and auto repossessions. The bank paid billions of dollars in fines and billions more in refunds to customers it had harmed. One former top executive — Carrie L. Tolstedt, who served for years as Wells Fargo's head of retail banking — faced criminal charges from the Justice Department. Through a plea deal, she avoided a prison sentence. The asset cap prevented Wells Fargo from keeping up with rivals. Over the course of the sanction, its ranking among the largest U.S. banks fell from third to fourth, with assets of around $1.9 billion. The bank will now be able to expand its lending, increase its deposits and potentially acquire other financial providers. Its stock price rose about 3.7 percent in after-hours trading after the Fed announcement. Wells Fargo was the first bank to face such a stiff penalty from federal bank regulators, but it's no longer the only one. Last year, the Office of the Comptroller of the Currency imposed an asset cap on TD Bank for violating anti-money-laundering laws. 'No one thought it would last this long,' Ian Katz, an analyst at Capital Alpha Partners, said of the Wells Fargo asset cap. Its removal 'signals both the bank's progress and the Fed's increasingly bank-friendly mood.'

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