While Wells Fargo took steps to fix itself, including replacing senior executives and eliminating its controversial sales goals, new problems continued to emerge.
Beyond the Fake-Account Scandal, Wells Fargo has admitted to charging thousands of borrowers for auto insurance they did not need and hundreds of homebuyers mortgage fees they did not deserve. Last year, Wells Fargo said about 545 homeowners lost their homes due to a apparent software glitch with the bank's loan modification process.
The Federal Reserve, citing "widespread consumer abuses," slammed Wells Fargo in early 2018 with unprecedented sanctions that prevent the bank from growing until it cleanses its act. The asset cap has remained in place longer than anticipated because the Fed is unsatisfied with Wells Fargo's fixes.
'Mr. Inside '
Sloan was always an odd choice to lead sweeping change at Wells Fargo because of his long roots at the bank and within his culture.
Prior to becoming CEO, Sloan served as the chief operating officer of the bank, where he oversaw the community banking division at the heart of the fake-accounts scandal. Sloan also oversaw the consumer lending division, where Wells Fargo's auto loan problems occurred.
"He was Mr. Inside," said William Klepper, and management professor at Columbia University. "If they wanted to make a clean cut, Sloan should have gone and they should have looked out for a new leadership team."
Wells Fargo has now heeded calls to find an external candidate to replace Sloan.
"Although we have many talented executives within the company," Wells Fargo Chairwoman Elizabeth Duke said, "the board has concluded that looking for someone from outside is the most effective way to complete the transformation at Wells Fargo."
Duke, and the former Federal Reserve official, credited Sloan with serving Wells Fargo "with pride and dedication" and for working "tirelessly" as CEO.