Tim Sloan is the wrong man to fix the broken corporate culture at Wells Fargo, according to banking analyst Dick Bove.
Sloan, named Wednesday to head the troubled bank following a brutal scandal over illegal sales practices to customers, is an insider who was part of the problem and unlikely to lead Wells Fargo back, said Bove, vice president of equity research at Rafferty Capital Markets.
"I don't think an insider is the right guy to do it," the analyst said in a phone interview. "The culture needs to be adjusted. The fat has got to come out of this company. There's a whole lot of things that need to be done that Mr. Sloan is not going to do."
Bove's comments came the same day Wells Fargo released third-quarter earnings results that beat profit expectations but were otherwise lackluster. Wells is the only one of 35 stocks Bove covers on which he has a sell rating.
Profit declined 3.7 percent from the same period a year ago, though revenue gained 2 percent. The pretax preprovision profit fell 4.2 percent.
Beyond the numbers, the bank faces a major struggle to restore its reputation. The bank for years put millions of customers into various programs without their knowledge, only recently acknowledging the problems publicly as part of a $185 million settlement with multiple agencies.