Wells Fargo says it’s planning to look for a new head of wealth management as part of a broader restructuring of the company.
The restructuring is designed to create a flatter organizational structure and provide leaders with clear authority, accountability and responsibility, according to Wells Fargo.
Under the new model, the company now has five lines of business, each with its own CEO, reporting to Wells Fargo CEO Charlie Scharf.
As such, Jon Weiss, who’s been leading the company’s wealth and investment management business, is moving into a new position as CEO of the new corporate and investment banking line, which previously formed a part of wholesale banking, Wells Fargo says. Weiss will continue in his role as head of wealth and investment management on an interim basis while Wells Fargo searches for his replacement.
The wealth and investment management line includes Wells Fargo Advisors, the Private Bank, Abbot Downing and Wells Fargo Asset Management, the company says.
“The Wells Fargo franchise has extraordinary opportunity and power, and these organizational changes enable us to more effectively pursue our goals and take advantage of the opportunities in front of us,” Scharf says in a statement.
“These changes create the right structure to build our businesses over the long term and increase our ability to successfully execute on our top priority, which is the risk, regulatory and control work. I am confident that this organizational model and our strengthened risk and control foundation will bring greater focus and accountability to the company,” he adds.
The other three new lines of business are consumer and small business banking, which will be led by Mary Mack; commercial banking, led by Perry Pelos; and consumer lending, led by Mike Weinbach, who most recently served as the CEO of Chase home lending at JPMorgan Chase.
Wells Fargo has been overhauling its management structure in the wake of the 2016 fake-account scandal at its retail bank.
Earlier this month, the company brought on a Santander Holdings USA executive to oversee Wells Fargo’s sales practices, which were at the heart of the bogus account scandal and have attracted scrutiny even to the firm’s wealth management division. Earlier, Wells Fargo added a new head of strategic execution and operations to its operating committee and created a new “enterprise customer excellence” group that will oversee the firm’s remediation and complaints operations.
Since the 2016 scandal, Wells Fargo has paid out more than $4 billion fines and penalties. Its former CEO John Stumpf last month settled with the Office of the Comptroller of the Currency, agreeing to pay a $17.5 million civil penalty.
Discussing the sales scandals and the subsequent scrutiny from regulators during an earnings call with analysts in January, Scharf said the company had made “terrible mistakes.”
“We have not yet met our own expectations or the expectations of others. We must do what’s necessary to put these issues behind us,” Scharf said last month. He added that the company may further reorganize its management following his review of its various businesses.
“The path to success will be bumpy,” he said at the time.
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