‘Reckless’
Lawmakers accused Wells Fargo & Co. of failing to comply with regulatory orders in a scathing report Wednesday, and said the bank poses a major risk to consumers. In February, Wells Fargo agreed to pay $3 billion to settle Justice Department and Securities and Exchange Commission investigations into the bank’s sales practices.
Elizabeth Duke resigned as chairman of Wells Fargo, effective March 8, days ahead of a March 10, congressional hearing during which she was expected to face calls to step down. Charles Noski, who joined the board in June 2019, will serve as chairman and testify instead.
Ms. Duke joined Wells Fargo’s board in 2015. She became vice chair in October 2016, shortly after the bank disclosed that branch employees had opened perhaps millions of fake accounts without customer consent. She replaced Stephen Sanger as chairman at the start of 2018, becoming the first woman to lead the board of the fourth largest bank in the United States.
James Quigley, who was also set to testify Wednesday, March 10, also resigned from the board. Mr. Quigley, the retired CEO of accounting firm Deloitte, joined the board in 2013.
The quick flight of Duke continues the trend of turmoil in the executive suite of Wells Fargo. The bank is now on its third CEO and second chairman since the fraudulent accounts scandal came to light around September 2016.