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Just how hated is Warren Buffett's "favorite" bank Wells Fargo?
Not only are millions of clients dumping the bank following countless scandals involving the bank's cross-selling of accounts, not only did the Fed slam the bank with an unprecedented penalty (as Janet Yellen's last act before she retired), not only did the bank's former CEO, Tim Sloan, unexpectedly resigned under dramatic pressure from Congress, but now the WSJ reports that the bank is having trouble getting top bankers interested in its open chief executive officer job.
WSJ - Bank - Board - Group - Candidates
According to the WSJ, the bank’s board approached a small group of top candidates, including JPMorgan consumer banking chief Gordon Smith, PNC CEO William Demchak and former U.S. Bancorp chief Richard Davis.
The results were ungood: both Demchak and Davis took a hard pass on potentially replacing Sloan, while Smith, who is JPMorgan’s co-chief operating officer, reportedly told confidants that he is reluctant to take the job and is likely to stay at JPMorgan.
Reasons - Nobody - CEO - America - Bank
There are reasons why nobody wants to be the CEO of what is emerging as America's most hated bank: while running the fourth-largest US bank is one of the biggest jobs in the business, it is hardly a "universally appealing" one:
Wells Fargo’s new CEO will have to juggle fixing problems in Washington, reviving key businesses and rehabilitating a corporate reputation damaged by many problems that came to light following the bank’s 2016 fake-account scandal.
Glory - Bank - Years - Wells - Fargo
Meanwhile, any "glory" to be earned turning around the troubled bank is likely years away, if ever. Wells Fargo has a long to-do list from regulators and is operating under an unprecedented growth cap imposed by the Federal Reserve in early 2018.
Furthermore, some of the candidates have a far brighter future where they are: Smith, 60, oversees JPMorgan’s consumer operations and its commercial bank, and according to the WSJ, is considered...
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