Saturday, May 25, 2024

Charlie Scharf’s no-frills style could create a more stable Wells Fargo

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Hello.

Charlie Scharf returned to a tough job when he agreed to be scandal CEO Wells fargo. The company had “made a bunch of mistakes,” he says. And the penalty for those mistakes was a series of regulatory restrictions that will hamper the bank for years to come. Scharf added his to this list of mistakes last year, when he posted a note on the bank’s diversity efforts saying, “There is a limited pool of black talent to recruit with this specific experience. Hard to say you have high standards when your employees push fake accounts on clients.

But as FortuneRey Mashayekhi shows in this in-depth profile, Scharf brought a no-frills management style to the bank, perfected over his years of working with JP Morgan CEO Jamie Dimon. And it evolves regularly to allow a smaller, but more stable bank, to emerge from the crisis… eventually. The story is worth reading this morning, Here. Best fact: He started playing the guitar as a respite from the woes of the bank.

Separately, NASDAQ CEO Adena Friedman spoke yesterday at the New York Economic Club and defended her new diversity requirements on the board of directors for companies listed on NASDAQ. The rules have come under attack, including from former SEC chairman Arthur Levitt, who called them “grassroots politics.”

Friedman explained that the rules, which call for companies to have two different members – one female and the other a minority – are not a requirement. “If they’re not able to do it, they should explain it to their investors. This is a “have or explain” rule, not write off. And she said 73% of NASDAQ’s comments on the rules were positive, while only 20% were negative. It looks like the world is ready for this change, even though Mr. Levitt is not.

More news below, including today’s most important – Amazon Jeff Bezos to step down as CEO to his cloud lieutenant, Andy Jassy. And here’s your fun statistic for the day: From its IPO through Tuesday’s close, Amazon’s stock is up 255,233%.

Alan murray
@alansmurray

alan.murray@fortune.com



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