Wells Fargo reorganizes business lines
Jon Weiss, the head of wealth and investment management, has been named CEO of corporate and investment banking
Wells Fargo & Co. is splitting its investment bank into its own unit and separating consumer lending under a new leader as Chief Executive Charlie Scharf reorganizes the company.
The overhaul will divide the bank’s business lines into five units from three previously, Wells Fargo said in a statement Tuesday. Its wholesale unit will be split into a commercial bank and an investment bank that focuses on capital markets.
Jon Weiss, most recently head of wealth and investment management, was named CEO of corporate and investment banking. The bank will search for a new wealth head.
Perry Pelos, who most recently led wholesale banking, will lead the commercial banking part of that business.
Key insights
The sweeping changes mark Mr. Scharf’s first major set of overhauls after almost four months at the helm of Wells Fargo. “These organizational changes enable us to more effectively pursue our goals and take advantage of the opportunities in front of us,” he said in the statement.
The bank is hiring Mike Weinbach from JPMorgan Chase & Co. to run the new consumer-lending division, according to the statement. He will join Wells Fargo in early May.
Mr. Weinbach will take on some of the responsibilities of Mary Mack, who is becoming CEO of consumer and small business banking.
The moves come as Wells Fargo works to regain customer trust and mend ties with regulators and elected officials following years of scandals that claimed the last two CEOs.
“I am confident that this organizational model and our strengthened risk and control foundation will bring greater focus and accountability to the company,” Mr. Scharf said.
Wells Fargo shares are down 11% this year, the second-worst performance in the 24-company KBW Bank Index.
In the first weeks of his tenure, Mr. Scharf held a marathon of meetings with executives across the bank, asking them about the ways they do business. “Everything’s on the table for consideration,” CFO John Shrewsberry said of Mr. Scharf’s reviews at an investor conference late last year.
Mr. Scharf struck a cautious tone during his first earnings call last month, warning investors that he’s not suggesting any of the bank’s public issues will be resolved this year.
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