This Presidential Candidate is Thrilled That CEO Tim Sloan Stepped Down

06:28 03/31/2019

Shares of Wells Fargo WFC  were seeing slight gains on the news that the company's CEO Tim Sloan has retired from his role.

The executive has resigned immediately after 31 years at Wells Fargo and in his place, Wells Fargo's general counsel, Allen Parker, will take over as interim CEO. The bank is searching for a replacement.

Sen. Elizabeth Warren more than likely was pretty happy to hear the news, as she has been pretty vocal about how she feels towards Sloan. Warren, who is running for president in the 2020 election, tweeted that Sloan shouldn’t get a golden parachute of compensation as he departs.

She wrote, 'He should be investigated by the SEC and DOJ for his role in all the Wells Fargo scams. And if he’s guilty of any crimes, he should be put in jail like anyone else.”

Warren Buffet, whose Berkshire Hathaway is Wells Fargo’s biggest shareholder with more than 9 percent of shares, gave his own remarks and said, 'I’m very empathetic when he walks into a big problem at a very very large and politically sensitive institution.'

 “The fact that he served as an executive at Wells Fargo under John Stumpf, now disgraced, meant that as far as Congress is concerned he’s guilty until proven guilty,” CNBC’s Jim Cramer chimed in.

“One look at the make up of that committee made it obvious that Sloan was going to be a punching bag,” added Cramer.

“One look at the make up of that committee made it obvious that Sloan was going to be a punching bag,” he said.

“I’m not saying we should feel bad for the guy ... He’ll be fine,” he said. “But I will say that Sloan was asked to clean up the Augean Stables and from what I can tell he’s done a good job at that Herculean task, without derailing the earnings.”

It was in January that Wells Fargo reported financial results, missing estimates in revenue. The bank reported a profit of $1.21 a share, beating expectations. Revenue however at $20.98 billion fell short of expectations and the bank reported declines in all three of its main businesses.

Profit of $6.1 billion was down from $6.2 billion in the year ago quarter, and revenue was 5 percent lower than the year ago quarter as well. Wall Street analysts polled by Refinitiv were waiting for a profit of $1.16 a share on revenue of $21.73 billion.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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