As Wells Fargo continues to face further legislative action, the big bank announced the retirement of four of its risk management executives.
Last week, Wells Fargo made an internal announcement, saying it is implementing a new design for how the company manages risk, the company told HousingWire. Part of this announcement included the retirement of four of its risk management executives.
“Strengthening and transforming how we manage risk is a top priority for Wells Fargo,” a company spokesperson told HousingWire. “While more work is under way, we’re making meaningful progress that is allowing us to better serve our customers and enable our team members to more effectively manage risk across the company.”
The change in its risk management comes as Wells Fargo prepares to face an enforcement action and civil penalty related to its risk controls from the Office of the Comptroller of the Currency, according to an article by Emily Glazer for The Wall Street Journal, which first reported the retirements.
The changes include the head of financial crimes risk management, Jim Richards, who is retiring in early April; the head of operational risk and compliance, Kevin Oden, who will retire in May; the enterprise risk head, Keb Byers, who will retire in June and is taking special assignments until his retirement, and community banking risk group head, Vic Albrecht, who is retiring in May.
Earlier this month, four members of Wells Fargo’s board of directors, including its three longest-serving directors, announced they will retire next month as the bank continues to clean up from its troubles of the last 18 months.
The moves come on the heels of the Federal Reserve sanctioning Wells Fargo for its various issues over the last year or so, including overcharging mortgage customers and opening fake accounts.
But these retirements and leadership shakeups are only the beginning.
Last year, the bank named Elizabeth Duke, a former member of the Board of Governors of the Federal Reserve, to serve as its new chair.
Duke took over as the bank’s vice chair when Stephen Sanger replaced John Stumpf as the bank’s chair.
Sanger ascended to the position of leadership after Stumpf resigned as the bank’s chief executive officer and board chairman in the wake of the bank’s fake account scandal.
Sanger had served on Wells Fargo’s board for more than 14 years but retired last year as well.
This is all in addition to many other changes in lower levels of executive management. And for some, even this is not enough. Last year, Sen. Elizabeth Warren, D-Mass., called on the Fed to boot all 12 members of Wells Fargo’s board.
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