"At the time, Wells had been laboring under a regulatory crackdown unleashed by the cataclysm that blackened the formerly burnished Wells name, the heavily publicized scandal revealing that the bank had bilked millions of customers by creating fake and unneeded accounts at its branches. That culminated in a draconian penalty imposed by the Federal Reserve: a hard limit on its total assets that essentially blocked Wells from raising the deposits that form the lifeblood of banking."
"Scharf recalls that every Monday morning, he would lead a two-hour meeting of the 15-member operating committee in which they laboriously worked through where their departments stood on reaching their goals. "Charlie would go around the table asking, 'Why are you missing these dates? Why are we falling behind?'" relates one of the brain trust subject to the grillings. He'd relentlessly demand that executives who were lagging come back next week with a formula to course correct, and catch up."
Charlie Scharf became CEO in October 2019 and led the creation of a 3,162-page remediation plan with 6,000 tasks involving 28,000 people to rescue Wells Fargo. The bank faced a regulatory crackdown after a scandal in which employees created fake and unneeded customer accounts, and the Federal Reserve imposed a hard asset cap that restricted deposit growth. Leadership held intense weekly meetings to track progress, demanded corrective formulas from lagging executives, and operated under harsh regulatory correspondence. Investors lost confidence, and long-time backers including Warren Buffett publicly criticized the bank’s prospects.
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