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Wells Fargo’s Former Wealth Chief Defends Unit

April 11, 2018

Wells Fargo’s wealth management business may have been dragged into the regulators’ crosshairs amid allegations of improper client referrals, but the man who ran the unit until last summer says he’s proud of what the division has achieved, the Charlotte Observer writes.

David Carroll, the former head of Wells Fargo’s wealth and investment management business who retired in July, tells the paper he’s proud of what the unit accomplished and feels “good about the integrity of the business.”

“And I feel really good as a meaningful shareholder of where (Wells Fargo CEO) Tim Sloan is taking the company,” he tells the Observer.

Carroll had been with Wells Fargo and its predecessor Wachovia for decades, having steered Wachovia towards a merger with Wells Fargo during the financial crisis of 2008, according to the paper. He tells the Observer he doesn’t speak for Wells Fargo, however, and declined to discuss the investigation facing its wealth management business.

The unit’s sales practices are apparently currently under direct investigation by the Justice Department and the SEC.

(Getty)

Wells Fargo is also conducting its own internal investigation of the unit’s sales practices following a late-2017 directive from the Justice Department. And last week, former and current employees of the unit told Bloomberg the company set high sales targets that pushed brokers to steer clients into accounts that weren’t always in the best interest of the clients.

By Alex Padalka
  • To read the Charlotte Observer article cited in this story, click here.