CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Wells Fargo share price down 2% after CEO Tim Sloan resigns

The bank's CEO resigns after a tumultuous time as leader.

Wells Fargo share price is down after embattled chief executive officer, (CEO), Tim Sloan, abruptly resigned after 2 years with the company. Sloan was criticised for his leadership during the bank’s many financial scandals.

Why is Tim Sloan resigning from Wells Fargo?

Sloan is retiring after a series of scandals that plagued the financial institution. The bank had to reimburse thousands of customers $575 million after starting fraudulent accounts in their names. The company also had a two-day outage that kept clients from accessing their funds. Sloan said in a statement that he would step aside so the organisation can move on from the infamous events.

‘I have decided it is best for the company that I step aside It has become apparent to me that our ability to successfully move Wells Fargo forward from here will benefit from a new CEO and fresh perspectives,’ said Sloan in a statement.

Sloan was criticised often by US politicians like Congresswoman, Maxine Waters. She said Sloan should be ‘shown the door’ for receiving a $2 million bonus in the wake of the scandals. Senator, Elizabeth Warren, also wanted Sloan to resign and expressed her approval of the decision on Twitter.

‘About damn time. He enabled Wells Fargo's massive fake accounts scam, got rich off it, & then helped cover it up,’ tweeted Warren.

What’s next for Wells Fargo?

The financial institution’s chair, Elizabeth Duke, noted that Wells Fargo’s next CEO will likely come from outside the organisation so the bank can start over with customers.

‘Although we have many talented executives within the company, the board has concluded that seeking someone from the outside is the most effective way to complete the transformation at Wells Fargo,’ said Duke.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.