Beleaguered bank Wells Fargo is expected to remain under the thumb of the Federal Reserve until at least 2020 — more than six months longer than expected, the bank’s CEO said Tuesday.
The Fed is expected to constrain Wells’ growth as it continues to deal with the fallout from a slew of sales scandals that have scarred the bank since 2016, including a fake accounts scandal that led to the resignation of the last CEO.
Tim Sloan, the current head, had previously said he expected the central bank to lift the constraints early this year. Sloan didn’t elaborate on what had changed.
The comments came as Wells reported a drop in profit, to $6.06 billion, from $6.15 billion a year earlier.
The results were dragged down by a slowdown in mortgages, due primarily to rising interest rates, and a weakening community banking group, which has been under scrutiny for the sales scandals.


