Business World

Tuesday 20 August 2019

Wells Fargo executive fired over comments

Wells Fargo has fired Franklin Codel, its head of consumer lending, over a conversation he had with a former employee in which he disparaged US regulators, a person familiar with the matter said. Photo: Getty Images
Wells Fargo has fired Franklin Codel, its head of consumer lending, over a conversation he had with a former employee in which he disparaged US regulators, a person familiar with the matter said. Photo: Getty Images

Dan Freed and Patrick Rucker

Wells Fargo has fired Franklin Codel, its head of consumer lending, over a conversation he had with a former employee in which he disparaged US regulators, a person familiar with the matter said.

Codel's abrupt departure comes as the bank grapples with the fallout from a sales scandal in which thousands of employees enrolled perhaps millions of customers in products they did not want or need.

Wells Fargo is now subject to tighter regulatory oversight and faces ongoing probes and lawsuits due to the scandal. As a result, once top Wells Fargo executives became aware of Codel's comments, they felt they needed to take action, the source said

After being promoted as part of a broader management shake-up last year, Codel had become a key executive in the bank's effort to make things right with customers.

The conversation that led to Codel's departure was with a former employee about his payout, which regulators had to approve, three people with the matter told Reuters. They requested anonymity to discuss sensitive non-public information.

During the conversation, which took place in recent weeks, Codel said something negative about regulators, one of the people said.

The ex-employee alerted management to the comments, and Codel was swiftly fired. Wells Fargo said it dismissed Codel because his behaviour "was contrary to the company's policies and expectations of its senior leaders during a communication he had with a former team member".

Reuters

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