Wells Fargo CEO Scharf shakes up management at scandal-hit bank

A Wells Fargo ATM machine is shown in Los Angeles, California, U.S. October 19, 2018. REUTERS/Mike Blake

(Reuters) – Wells Fargo & Co (WFC.N) Chief Executive Charles Scharf announced his first major reshuffle on Tuesday, promoting several executives to new roles while also tapping a JPMorgan veteran to head consumer lending.

The shakeup is aimed at putting a new structure in place as the bank looks to rebuild its reputation and increase accountability, the bank said in a statement.

The new structure, which increases the bank’s business lines to five from three, closely resembles that of JPMorgan Chase & Co, where Scharf was mentored by CEO Jamie Dimon earlier in his career.

Scharf has already brought on several former colleagues from the No.1 U.S. bank since taking over last year. The latest addition, Mike Weinbach will join the firm after 16 years at JPMorgan to lead the San Francisco-based lender’s new consumer lending division in May.

The consumer bank will be split into a consumer lending division and a retail banking division and the wholesale bank will be split into a commercial banking unit, and a corporate and investment banking unit. The wealth management division was left unchanged.

Outside of consumer lending, the remaining the new segments will be led by Wells Fargo veterans. Mary Mack, former head of the entire consumer bank, will become CEO of Consumer and Small Business Banking. Perry Pelos, who was head of the entire wholesale bank, will become head of commercial banking, while John Weiss, who led the wealth management segment will move over to become CEO of the Corporate and Investment Bank.

Reporting by Abhishek Manikandan in Bengaluru; Editing by Saumyadeb Chakrabarty and Nick Zieminski

Source: https://www.reuters.com/article/us-wells-fargo-units/wells-fargo-ceo-scharf-shakes-up-management-at-scandal-hit-bank-idUSKBN20526D

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