Sloan, who abruptly left his post as the head of Wells Fargo a year ago, has joined the New York City-based investment firm as a senior advisor, Fortress says in a press release. In addition to working with the firm’s leadership team, he will play a role on its investment committees from the firm's Los Angeles office, according to the company.
"Tim is one of the most talented executives in financial services and we are excited that he has joined our team," Pete Briger, Fortress principal, co-CEO and head of the Credit Funds business, says in the press release. He cites Sloan’s “proven commercial instincts,” experience and “intellectual rigor” as assets to the PE shop.
Sloan had been with Wells Fargo for more than three decades when he stepped down from the helm in March 2019. He had taken over the chief executive role in October 2016, following the fake account scandal at the firm’s retail bank unit.
Nonetheless, Sen. Elizabeth Warren, D-Mass., who’s vying for the Democratic ticket for next U.S. President, had connected him to the scandal at the time of his departure.
“About damn time,” she tweeted at the news of Sloan stepping down. “Tim Sloan should have been fired a long time ago. He enabled Wells Fargo’s massive fake accounts scam, got rich off it, & then helped cover it up.”
Wells Fargo appointed Allen Parker as interim CEO and president following Sloan’s departure. In September, the bank announced it had poached Bank of New York Mellon chairman and CEO Charles Scharf to head the firm.
The bogus account scandal, in which thousands of the company’s employees opened millions of accounts without customers’ knowledge, has plagued the company since Sloan’s departure. Last month, Wells Fargo agreed to pay $3 billion in a settlement with the U.S. Justice Department and the SEC to resolve criminal and civil investigations into its sales practices.
Founded in 1998, Fortress managed around $41.5 billion in assets as of the end of September, the company says. It offers a variety of credit, real estate, private equity and permanent capital investment strategies for more than 1,750 institutional clients and private investors around the world, according to the press release.
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