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Wells Fargo Chairman Sanger likely to step down: Report

  • Wells Fargo's board of directors are planning to make final restructuring decisions by Labor Day, Dow Jones said, citing people familiar with the matter.
  • Stephen Sanger will likely step down as chairman by the bank's shareholder meeting in the spring, the report said, citing a source.
  • Last Friday, Wells Fargo said in a quarterly SEC filing that its Board of Directorsis conducting a review which is "expected to result in actions in third quarter 2017."
Stephen Sanger, Wells Fargo Chairman
Scott Mlyn | CNBC
Stephen Sanger, Wells Fargo Chairman

Wells Fargo's Stephen Sanger will likely step down as nonexecutive chairman as part of the board's effort to restructure the bank in the wake of its consumer sales scandal, Dow Jones reported Thursday, citing people familiar with the matter.

Wells Fargo declined to comment to CNBC.

Directors are planning to make final decisions on any changes by Labor Day, the news wire said, citing some of the sources.

Last Friday, Wells Fargo said in a quarterly SEC filing that its Board of Directors is reviewing the structure, composition, and practices of the bank, which is "expected to result in actions in third quarter 2017."

Sanger is expected to step down by the bank's shareholder meeting next spring, the report said, citing one source.

Vice Chair Elizabeth Duke, who was a member of the Federal Reserve's Board of Governors during the financial crisis, is then likely to take the spot, the report said, citing some of the people.

Sanger was elected chairman of the board in Oct. 2016 and was chairman of General Mills for more than a decade until he retired in May 2008, according to Wells Fargo's website. Sanger is also a director of Pfizer, the site said.

Wells Fargo shares traded about 0.9 percent lower, near session lows, after the report. The stock is down 5 percent this year.

Wells Fargo, once considered the most upstanding of America's financial giants, has been plagued by scandal in the last year.

Last fall, the bank paid $185 million in penalties after it was discovered that since 2011, workers trying to meet aggressive sales goals had opened about 2 million consumer deposit and credit card accounts without customers' authorization. The bank has since abandoned those sales goals after clearing out top managers deemed responsible for the problems.

Then in late July, news broke that hundreds of thousands of Wells Fargo customers were charged for auto insurance they did not need. The bank said on July 27 it plans to give about 570,000 customers a total $80 million for damages starting in August 2017.