There are still a lot of moving parts that Wells Fargo has yet to get under control, with their concerted revamp of the business.
The company’s top regulator has recently reported that the bank has a “massive backlog” of employee human resources complaints as well as poor control around pay (ref WSJ). This, in addition to a long list of problems that the new CEO Charles Scharf has been working diligently since last October to solve. Scharf is said to be making progress in repairing the regulatory messes that emerged after the 2016 fake account scandal. The recent HR complaints came in a July letter from the Office of the Comptroller of the Currency and laid out a lengthy to-do list which the HR department needs to address, including thousands of employee complaints, an inadequate policy for clawing back compensation from executives, and controls around pay that aren’t tight enough to ward off potential misconduct. This all seems somewhat mild compared to the serious problems that Scharf has already been undertaking, but his recent hiring of former Santander Holdings CEO Scott Powell as COO should be a big assist in all of these matters, including focusing “on regulatory priorities and improving the control and operations functions” (ref WSJ). Human resources has got to be in there somewhere. Here’s to the current progress of Wells; we’ll continue to follow as they mop up their woes.