The bank announced that two executives would take leaves of absence due to "ongoing reviews" by regulators
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Two Wells Fargo executives are headed out the door as the bank’s parade of scandals continues.
The banking giant announced Wednesday that Hope Hardison, its chief administrative officer, and David Julian, its chief auditor, have taken leaves of absence. Hardison and Julian will no longer be members of Wells Fargo’s operating committee, the bank said.
Wells Fargo said that the leaves of absence were linked to “ongoing reviews” into its sales practices by federal regulators. A bank spokesman would not comment on why the executives weren’t simply fired, according to a CNN report.
Wells Fargo said it would launch a search for a permanent replacement for Julian, CNN reported. In the meantime, the bank has elevated Kimberly Bordner, executive audit director, to acting chief auditor. Hardison’s responsibilities will be handled by David Galloreese, head of HR, and Jim Row, head of stakeholder relations.
The megabank’s troubles began more than two years ago, when it was revealed that employees had opened millions of unauthorized customer accounts in order to boost sales figures. The revelation led to the resignation of CEO John Stumpf and community banking head Carrie Tolstedt. Since then, the bank has found itself embroiled in one scandal after another. It has admitted to charging unauthorized rate-lock fees to mortgage holders and charging customers for car insurance they didn’t need. The bank has also been sued multiple times for allegedly discriminating in its lending practices.
Earlier this week, Wells Fargo agreed to pay a $65 million penalty to settle allegations by the state of New York that it misled investors about its sales practices.
