Scandal-plagued Wells Fargo names BNY Mellon’s Charles Scharf as CEO

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Wells Fargo named Charles Scharf, chairman and CEO of Bank of New York Mellon, as its new chief executive officer and president on Friday, effective Oct. 21.

“Charlie has demonstrated a strong track record in initiating and leading change, driving results, strengthening operational risk and compliance, and innovating amid a rapidly evolving digital landscape,” Wells Fargo Board Chairwoman Betsy Duke said in a statement.

The bank struggled for months to find a candidate willing to take the top position since CEO Tim Sloan abruptly resigned in March after 31 years at the fourth-largest U.S. bank. Sloan was supposed to clean up the mess that had claimed his predecessor, John Stumpf, but failed to satisfy regulators’ demands to overhaul the sprawling institution.

Stumpf announced his retirement in October 2016 after trying to deal with a scandal in which employees had created millions of fake bank accounts to meet sales quotas, severely damaging Wells Fargo’s reputation and spurring scrutiny from regulators and Congress. Last year, the Federal Reserve capped the bank’s asset growth after Wells Fargo discovered more problems with customer dealings.

The bank’s general counsel, Allen Parker, took over as interim CEO after Sloan’s resignation. Parker will continue in that role until Scharf joins the company.

Prior to his role at BNY Mellon, Scharf was CEO of Visa and is on the board of Microsoft.

BNY Mellon named CFO Thomas Gibbons as its interim CEO.

Shares of Wells Fargo were up nearly 1% at $49.31 in premarket trading.

CNBC’s Maggie Fitzgerald contributed to this report.

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