Written by NUPUR Anand, Lananh Noguyen
New York (Reuters) -Charlie Charf, CEO of Fargo, knows that he has a good reputation, but he said that when the bank was finally released from the roof of assets worth $ 1.95 trillion by the organizers on Tuesday, it became emotional.
“Everyone thinks that I am this cruel and cruel person … but it was long in making it, it has affected many people negatively,” Scharf said. “Suddenly, it seems as if everything was worth it and everyone feels it.”
Scharf, 60, took command in Wales Fargo in 2019, pledged to fix her firm problems from a fake account scandal that broke out in 2016. The bank faced a public scream, bombed by legislators and slapped billions of dollars in fines.
The Federal Reserve’s decision was closed to lift one of the last major penalties in Wales Valzo to a large extent in its history. It also strengthens the heritage of a cherry after a hard shift, as he repaired the administration, reduced the number of employees and cleared companies.
“I feel good,” Scharf told Reuters in a large -scale interview on Wednesday after greeting messages from employees and their counterparts in other banks were flooded.
It converts its focus into growth after spent approximately six years as well as the Wales Fargo warehouse. It plans to expand more credit cards and investment banking services, with also investing in wealth and commercial banking services.
He said he would not expand real estate mortgages. The bank came out of many of these operations after it was exposed to the scandal.
Wales Vargo also aims to increase profits, he plans to raise his profits to keep payments consistent with investors. He said that the re -purchase of shares will continue, but its pace may slow down with the bank’s investment in growth.
Scharf, who was running BNY and Visa previously, acquired the scandal of the scandal after the expulsion of his predecessors. He installed a new driving, reduced more than 55,000 jobs, came out of unbearable companies and reformulated the bank’s risk management. In an attempt to transform its culture, he also reformulated the company’s performance review process to enhance accountability.
Wells Fargo shares increased by 0.5 % on Wednesday afternoon, after more than 8 % increased this year as investors have become more optimistic about tastes in their organizational luggage.
“The pressure, by the way, for me – does not go away, it only changes” from focusing on historical problems to growth in the future, “Scharq said. “I will not work less difficult, I will not feel any lower pressure, and I will get more fun.”
Below is a copy of the Reuters interview with Schaar, which was edited for length and clarity.
Reactions
I feel comfortable. I felt some emotion yesterday. Everyone thinks that I am this cruel and harsh person, and I am not actually. It has been a long time to make, many people are affected negatively. And I started getting notes immediately from everyone, but especially the people working here. I would like to say 80 % of them, and 75 % of them were about their experience here for a period of time and their pride now, and thanks. 20 percent was about 2000 dollars (the stock prize) we provided to them.
Suddenly, it seems as if everything was worth it and everyone feels it. It is everyone, and I really think everyone here has been affected by the work. Some of them directly, because they had to do this, but even people who have to speak to their families and friends on weekends about the news of Wells Fargo, and why are they still working here? You put people in a lot.
Growth areas
I expect that in all the remaining companies we have, with a slight exception of our mortgage business, they all have opportunities to grow and produce higher returns.
Therefore, this is true for the wealth company through commercials that are still correct in CIB (companies and investment banking services), because although we see results and a great height there, it is true in our business, and it is very important, this is true in our banking business of consumers and small businesses, where they were more affected by sales practice scandals. We just offer majors again to be able to serve customer on a larger scale and grow in ways we could not.
People always ask me, “What are the three most important areas of priority to growth?” And I try not to answer the question, because I really think every work line has an opportunity.
Operations of acquisitions
Not in the short list now. At a time, the capabilities about payments, about rewards, about the movement of securities, will we be ready to consider something like this? certainly. But we did not start thinking about what it is. We still have more work to do. We do not want to advance ourselves.
Changes in Wales Vargo
In some respects, it is a completely different company. Culture is different here, it is not a “I” culture. People want to be treated fairly, they want to get their salaries fairly, but they come here because they want to work together. This is incredibly important.
We were moved to the maximum, we have been harmed because we did not make difficult decisions about people, and we did not face things. But I believe that a culture like this, in a balanced way, is incredible. It takes a long time to build.
We have a real accountability in the organization, and this is that positive, and this is negative, but it brings with it a strong desire to help people improve.
It is more than merit. Nothing is perfect. We still have ways to go, but it pays performance. It is expected that every large leader will participate in a detailed way in each of the strategy and implement their business plan.
The number of employees
We add bankers, sales personnel, commercial bank relationship managers, and technology resources. We just finance it through the efficiency we get elsewhere. There are great opportunities to become more efficient.
Re -purchase and profits
A lot of stocks have been bought, and I expect to continue to buy shares again. Therefore, on the profits, what we want to be able to do is to increase the company’s profit capacity (and) the profit increases to maintain the relatively consistent payment rate. We hope to be able to increase profit distributions at a reasonable level.
We hope we have more opportunities to invest in work, so we will likely buy less shares than we have.
Future plans
(Includes wooden hobbies, playing guitar and tennis.)
As much as I was working, we find time to do things that allow us to renew.
I will not work less difficult, I will not feel any lower pressure. Maybe I will get more fun.
Industry reaction
I heard from all the executives of the major banks who congratulate us. When you are inside of these things, you know how difficult it is and what it takes. People have said it is good for this industry. Wells Fargo, without these restrictions, allows the wells able to support growth. Although we are all very competitors, the strong is good.
(Participated in NUPUR Anand and Lananh Nguyen reports in New York; Edit by Matthew Lewis)
