Charles Scharf Puts Stamp on Wells Fargo With Overhaul of Reporting Lines
February 11 2020 - 11:59AM
Dow Jones News
By Ben Eisen
Wells Fargo & Co. is overhauling its reporting lines, Chief
Executive Charles Scharf's first move to stamp out the structure
implicated in its fake-account scandal.
The bank said on Tuesday that it plans to split its three
business units into five. What had been known as the wholesale bank
will be split into a commercial bank that provides back-end
services for companies, as well as a separate investment bank that
focuses on capital markets.
The lender will also split its consumer bank into two units: one
that focuses on branches and small businesses and another that
focuses on consumer lending. The two units had been run separately
prior to 2017.
This is the first major structural change under Mr. Scharf, an
outsider brought to run the bank in October. He has prioritized
appeasing regulators and repairing the bank's reputation, which was
sullied after the company in 2016 revealed that branch employees
had opened perhaps millions of accounts without customer
consent.
"I am confident that this organizational model and our
strengthened risk and control foundation will bring greater focus
and accountability to the company," Mr. Scharf said in a
statement.
David Benoit contributed to this article.
(END) Dow Jones Newswires
February 11, 2020 11:44 ET (16:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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