Wells Fargo Identifies Charles Scharf as CEO

On Friday, Wells Fargo & Co appoints the banking veteran Charles Scharf as its chief executive officer.

He has been the lender’s third CEO from the time when a wide-ranging sales disgrace exploded three years ago.

Scharf will take the reins from provisional CEO Allen Parker.

In March, Parker was set in motion for the position. This was when former CEO Tim Sloan resigned unexpectedly.

Sloan had exclaimed that the increasing pressure from politicians and regulators had become interference in running the scandal-afflicted bank.

Meanwhile, Scharf will take over at a time when the bank is under a regulatory microscope. Moreover, it is working at upgrading its damaged reputation following the scandal.

Internal and regulatory probes since the scandal have uncovered other issues in each of the bank’s primary businesses, resulting in billions of dollars in fines, penalties and an unprecedented cap on its balance sheet by the Federal Reserve.

Since the scandal, Wells Fargo’s board has been rearranged many times. After 2016, more than half of the company’s individual directors joined the board.

Scharf’s Past Story

Most recently, Bank of New York Mellon was recognizing Scharf as its CEO.

This was before he was merging with the regional bank, where he held the top job at Visa Inc. It is the world’s largest payment network.

In 1987, Scharf started his career at Commercial Credit Corp. This firm is a consumer finance company lead by Jamie Dimon and Sandy Weill.

Over time, they have led the two of America’s biggest banks.

According to an alumni magazine for the NYU stern business school, Scharf was appointed to be Dimon’s assistant after six months working for the job at Commercial Credit.

Scharf will start in his new role next month, Well Fargo said in a statement.

In news reports, sources indicated that the lender’s board had thought of keeping Parker in the job permanently. This was even after disclosing that they would seek an outsider to fill the role in June.

Meanwhile, shares of Wells Fargo were higher nearly 1% at $49.31 in premarket trading.