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Wells Fargo creates rebuilding trust, ethics offices


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Wells Fargo creates rebuilding trust, ethics offices

As part of its continuing efforts to regain customers' and regulators' confidence following the sales-practice scandal, Wells Fargo & Co. created a Rebuilding Trust office and an Office of Ethics, Oversight and Integrity, President and CEO Timothy Sloan disclosed Jan. 19 during his company-wide address in Dallas.

The Rebuilding Trust office, which will organize and accelerate the company's efforts through one integrated program, is led by Justin Thornton. The Office of Ethics, Oversight and Integrity, created to ensure a retaliation-free workplace, will be led by Theresa LaPlaca, a senior leader in wealth and investment management, on an interim basis. The Office of Ethics, Oversight and Integrity will house many of the groups responsible for issues' research and escalation, covering global ethics and integrity, sales practices oversight, internal investigations, and complaints oversight.

In more people news, Richard Yorke, who was recently named COO of wholesale banking, will lead corporate entity oversight on an interim basis. Scott Zaret from corporate risk will lead operational resiliency oversight permanently. Yorke and Zaret will join CFO John Shrewsberry's leadership team, and will partner closely with Joe Rice, who leads the Recovery and Resolution Program office. Yorke, Zaret and Rice are tasked to ensure all of the company's resolution-planning efforts for the short and long term are designed to adhere to regulatory requirements.

Moreover, in his company-wide address in Dallas, which is the first of six town halls this 2017, Sloan said that the company expects two rate hikes this year, and expects economic growth to pick up a bit. He added that Wells Fargo's quarterly results included a loss of $592 million, or 7 cents a share, from an accounting impact associated with the hedging of long-term debt.

He also said that the company will become "the first large U.S. bank with an entire fleet of card-free ATMs" this spring.