Banking

Another Wells Fargo boss is leaving as turnover continues in upper ranks

Wells Fargo said Wednesday its chief risk officer is retiring from the San Francisco-based company, the latest in a string of executive departures since a major sales scandal.
Wells Fargo said Wednesday its chief risk officer is retiring from the San Francisco-based company, the latest in a string of executive departures since a major sales scandal. AP

Wells Fargo said Wednesday its chief risk officer is retiring from the San Francisco-based company, the latest in a string of executive departures since a major sales scandal.

Mike Loughlin, who is based in San Francisco, has served in his current role since 2008, a period that includes the years when retail bank employees were opening fake accounts to meet sales goals. Wells Fargo spokeswoman Richele Messick told the Observer that Loughlin’s retirement was a personal decision after spending more than three decades with the company.

In a statement, CEO Tim Sloan praised Loughlin’s tenure with the company, noting it included some of its most critical moments, including the financial crisis and Wells’ 2008 acquisition of Charlotte’s Wachovia.

“Mike has demonstrated leadership and a commitment to all our stakeholders, especially our customers, in one of our company’s most critical roles, and for that we are grateful,” Sloan said.

Loughlin was among eight executives, including Sloan, for whom the bank withheld cash bonuses for 2016 in an effort to reinforce accountability at the company following revelations of the sales scandal that year.

Loughlin, who reported directly to Sloan, joined Wells Fargo when it acquired Crocker National Bank in 1986.

It’s the latest turnover at the bank since the scandal and more recent announcements about problems in other business lines, such as mortgage and auto lending.

Shortly after the bank reached a settlement over its sales practices in September 2016, CEO John Stumpf retired from the company and community banking head Carrie Tolstedt also left.

More recently, the bank disclosed in November the firing of its head of consumer lending, and last month Wells said two executives based in Charlotte – its head of human resources for community banking and its head of a legal department group over employment matters – were no longer working for the company.

Wells, which employs more people in Charlotte than anywhere else, said it expects to name Loughlin’s successor in the next few months. Loughlin will remain in his current role through the transition.

Deon Roberts: 704-358-5248, @DeonERoberts

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