Wells Fargo

Elizabeth Warren: CEOs should "face jail time for overseeing massive scams"

In this image, Elizabeth Warren speaks into a microphone at a committee hearing.
Photo: Chip Somodevilla/Getty Images

In a Washington Post op-ed on Wednesday, 2020 presidential candidate Sen. Elizabeth Warren (D-Mass.) proposed a law that "expands criminal liability to any corporate executive who negligently oversees a giant company causing severe harm to U.S. families," citing her previous campaigns against former Wells Fargo CEO John Stumpf and his predecessor Tim Sloan.

The big picture: Warren's trustbusting campaign is following a playbook she laid out in 2016. After placing targets on Big Agriculture and Big Tech, the 2020 candidate is going after banking — with health care, telecom and big retail potentially on the list.

Wells Fargo CEO Tim Sloan steps down

Wells Fargo and Company CEO Timothy Sloan testifies before the House Financial Services Committee
Wells Fargo's ex-CEO Timothy Sloan testifying before the House Financial Services Committee last month. (Photo by Chip Somodevilla/Getty Images)

After two years at the helm, Wells Fargo CEO Tim Sloan will step down effective immediately. The company's general counsel Allen Parker will serve as interim CEO while the company searches for a new chief executive.

Between the lines: Sloan is the second CEO, after John Stumpf, to leave since Wells Fargo's customer abuse scandals came to light in late 2016. Lawmakers have called for Sloan to resign given a string of other controversies that happened under his watch. Officials also questioned how much Sloan knew as COO and CFO when the company's foul sales practices were underway.

  • Also noteworthy: Parker joined Wells Fargo in 2017, which in theory means he will avoid criticism surrounding the bank's controversies that occurred before he was there.