Inside the Stagecoach
April 20, 2018

Sloan: Committed to the work that’s still left to do

Wells Fargo CEO Tim Sloan announces that Wells Fargo has reached agreements on consent orders with the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau.

Editor’s note: On April 20, CEO Tim Sloan sent the following companywide message.

Last week, when we announced our preliminary first quarter financial results, we said they were subject to change because of ongoing discussions we were having with the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) about proposed consent orders that called for civil money penalties totaling $1 billion.

Today, we announced that we’ve reached agreements on those consent orders, which included monetary penalties totaling $1 billion. Here is a link to the news release we issued today.

These orders affirm that we share the same priorities with our regulators and that we are committed to continuing the work that’s still left to do with focus, accountability, and transparency.

As I said in our news release today, our customers deserve only the best from Wells Fargo. I know you share that commitment because of the passion you show each day for our vision and values and the six goals we are dedicated to achieving.

We also announced today that the orders will result in an adjustment to the preliminary first quarter financial results we announced last week. An additional non-tax deductible accrual of $800 million is reducing our reported first quarter net income by $800 million, or $0.16 per diluted common share, to $4.7 billion, or 96 cents per diluted common share.

When you get questions about today’s news, here are some points you can emphasize with your colleagues, family, and friends:

  • The consent orders resolve previous regulatory matters that were not new to the public and that we, as a company, have been working on to make right for customers — interest rate-lock extensions on home mortgages and third-party collateral protection insurance on auto loans.
  • The agreements reached with the OCC and the CFPB reflect their expectations of us, which we are committed to meeting as we rebuild trust and continue our progress toward our six goals.
  • Finally, as I said in today’s announcement, we believe our customers deserve only the best from Wells Fargo, and we are committed to delivering that.

You can always visit the Building a better bank: Our progress page for additional information about our commitment to build a better bank.

Thank you for all the perseverance, optimism, and hard work that you’re showing each day as we build a better Wells Fargo for the future.

Tim Sloan signature
Timothy J. Sloan