DJ Wells Fargo Stock Pops on New CFO -- Barrons.com

By Teresa Rivas

Wells Fargo stock rose Tuesday after the bank named a new chief financial officer, amid an ongoing management overhaul.

Wells Fargo (ticker: WFC) named Mike Santomassimo its new CFO, replacing John Shrewsberry. Shrewsberry, who will retire in the fall, had spent more than two decades at the firm, and had held the CFO position since 2014. Santomassimo was previously chief financial officer at Bank of New York Mellon (BK).

Shrewsberry is the latest executive to leave Wells Fargo as it struggles to overcome its past scandal and current pandemic-related headwinds. He held onto his position, unlike a number of his C-suite peers, through the fake accounts scandal that came to light in 2016. Management changes have continued at the company, as Wells Fargo Chief Executive Officer Charles Scharf was just named to head the bank in November. Scharf, the former head of BNY Mellon, has been quick to hire outsiders for key positions as he tries to turn the firm around. Thus, Shrewsberry's departure isn't too much of a surprise.

Wells Fargo rose 4% to $25.55 in recent trading. The stock could use the bump, as it's down nearly 53% year to date. Even before the coronavirus pandemic gripped the U.S., Wells Fargo was struggling to overcome its past problems. Since then, it has also had to contend with low interest rates, a dividend cut, and dismal earnings results.

No wonder then that investors might be looking forward to a fresh chapter, with new leadership at the helm.

Write to Teresa Rivas at teresa.rivas@barrons.com

(END) Dow Jones Newswires

July 21, 2020 12:01 ET (16:01 GMT)

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