“Chief risk officer at Wells Fargo” sounds about as poisoned a chalice as exists in any c-suite anywhere. Not quite as unpalatable as, say, chief compliance officer of Credit Suisse (or Wells Fargo, for that matter), but no cup of tea all the same. Now, things aren’t quite as bad as they used to be, someone’s gotta do it, and Derek Flowers has already spent some time mulling over Wells’ precarities as chief credit and market risk officer, so, you know, in for a penny….
The move, effective immediately, follows the announcement earlier this month that Amanda Norton, who previously held the post, will retire this summer…. “Over the last several years, he has played a critical role managing the build-out of the company’s risk and control frameworks,” Charlie Scharf, Wells Fargo’s chief executive, said of Mr. Flowers in a statement.
Jeez, Chuck, we’re not sure that’s quite the endorsement you think it is.
In September, the Office of the Comptroller of the Currency fined the bank $250 million for failing to fix risk-and-compliance problems in its home-lending business. In April 2018, the bank entered into a $1 billion settlement over claims of misconduct in its lending businesses and agreed to improve its risk management practices.