Wells Fargo CEO Says Bank Is Working on Cost Control
Yesterday, Wells Fargo CEO Tim Sloan said the troubled bank is working on cost control as it attempts to recover from the fake account scandal of 2016.
At an industry conference, Sloan indicated Wells Fargo is trying to keep its expenses as low as possible, despite being fined millions of dollars for opening unauthorized checking and credit card accounts. Sloan did not comment on the total expenses the bank has incurred, but a second quarter financial disclosure showed these costs may reach $3.3 billion.
Right now, the bank is expecting an efficiency ratio of 60-61% for the second half of 2017. This is higher than the bank’s average ratio of 55-59%, but Sloan hopes to decrease that rate at some point next year.
The last month in particular has been a struggle for Wells Fargo. The bank has faced litigations and investigations for closing valid bank accounts, charging customers for unnecessary car insurance, charging unauthorized merchant credit card fees, and delaying mortgage approvals to charge penalty fees.