Overview of CEO Timothy J. Sloan-Bank of America
Timothy J. Sloan was the long-serving employee of the Wells Fargo, a banking institution based in Los Angeles. Sloan was born in 1960, pursued a B.A in economics and history as well as an M.B.A (Global CFO Council n.p). in finance and accounting at the University of Michigan. After completing his master’s program, he started working at Standard Federal Savings and Loan Association in Ann Arbor as a teller. Sloan then joined the Continental Illinois National Bank Trust in 1984. He started working at Wells Fargo in 1987, where he served in various positions until his retirement.
Sloan has served at Wells Fargo for 31 years as the chief financial advisor, the head of the wholesale banking group, chief administrative officer where he managed corporate social responsibility, corporate communications, enterprise marketing, corporate human resources, government relations, and strategic planning for this banking institution (Global CFO Council n.p). Additional, prior to the roles above, Sloan had also worked as the head of real estate, head of commercial banking, and specialized financial services where he spearheaded operations within the wholesale banking which offered credit and non-credit services to various clients across the globe. Sloan was appointed as the Chief Executive Officer of the Wells Fargo in November 2015 and took over this office in early 2016, replacing John Stumpf, who opted to retire after being accused of propagating a scandal that entailed billions of money (Matt n.p).
Before Sloan took office as the president of the fourth largest banking institution in the United States, the institution had tarnished its reputation especially after a scandal that leads to the resignation of the former president John Stumpt came into the limelight. During Stumpt`s tenure, employees had created numerous fake accounts with the aim of meeting the sales quotas. Following this incident, numerous other issues which are related to sales practices emerged across the institution`s business lines, including auto lending, mortgage as well as wealth management operations. When Sloan took over, he promised to clean up the mess surrounding the sprawling institution. He started with a good move, especially after he immediately fired 5,300 workers who were linked with the opening millions of fake accounts (Matt n.p). Apparently, there was a lot that needed to be done in order for the bank to regain its reputation. Besides the fake accounts scandal, this banking institution also admitted to charging hundreds of home buyers’ mortgage fess that they did not deserve and overcharging thousands of borrowers for auto insurance that they did not require. As a result, approximately 545 homeowners lost their homes due to software failure that regards to the bank`s loan modification process.
Sloan was under constant pressure from the regulators to meet the demands. Apparently, it was impossible for Sloan to meet the demands overnight. This stimulated additional criticisms concerning his roles not only from the regulators but also from politicians. There were repeated calls from politicians, such as Senator Elizabeth Warren urging the management of Wells Fargo to find new leadership to mend the broken culture (Matt n.p). The sentiments of the politicians, together with the increasing pressure from the regulators made Sloan opt to resign in October last year. His announcement prompted the board of directors to appoint Allen Parker as the interim president of the bank.
Global CFO Council. Timothy J. Sloan, Wells Fargo. Posted on February, 2019. Accessed from, https://www.cnbc.com/id/100491695
Matt Egan. Wells Fargo CEO Tim Sloan steps down suddenly. Posted on 29th March, 2019. Accessed from, https://edition.cnn.com/2019/03/28/investing/wells-fargo-ceo-retire-tim-sloan/index.html