SAN FRANCISCO–Before Wells Fargo can name a new CEO it will need the approval of the federal government.
Joseph Otting, who heads the Office of the Comptroller of the Currency, told Congress the agency intends to review Wells Fargo’s next chief executive. The review was included in a settlement Wells Fargo had earlier reached with the banking regulator. Under the agreement, the bank has to provide the regulator with 90 days’ notice once it has chosen a permanent successor.
Wells Fargo is searching for a new CEO following the resignation of its prior CEO, Tim Sloan, who surprised many by stepping down in March. Sloan stepped into the role after the bank’s prior president was forced to resign as part of numerous scandals uncovered at the bank. General Counsel C. Allen Parker is currently serving as interim CEO.
Wells Fargo continues to operate under numerous limitations put in place following scandals that were first reported in 2016, including the opening of more than three-million bogus bank accounts and the firing of more than 5,000 employees.
Wells Fargo has been fined more than $1 billion by various regulators and continues to operate under an asset growth cap put in place by the Federal Reserve.