CNBC Exclusive: CNBC Transcript: New Wells Fargo CEO Tim Sloan Speaks with CNBC's Wilfred Frost on "Fast Money" Tonight
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Tim Sloan, new CEO of Wells Fargo, on CNBC's "Fast Money" (M-T, 5PM-6PM ET, F, 5PM-5:30PM ET) tonight, Wednesday, October 12th. Following are links to the video on CNBC.com: http://video.cnbc.com/gallery/?video=3000558899 and http://video.cnbc.com/gallery/?video=3000558898.
All references must be sourced to CNBC.
MELISSA LEE: LET'S GO STRAIGHT TO WILFRED FROST, WHO HAS GOT AN EXCLUSIVE WITH THE NEW CEO OF WELLS FARGO. WILF, TAKE IT AWAY.
WILFRED FROST: THANKS VERY MUCH, MELISSA. YES, WE ARE JOINED BY TIM SLOAN, THE NEW CEO. MR. SLOAN, THANK YOU VERY MUCH FOR YOUR TIME THIS EVENING. I WANTED TO ASK, IF I MAY, TO START, IF I MAY, BY ASKING WHETHER YOU FEEL MR. STUMPF'S DEPARTURE FROM WELLS FARGO IS A NECESSARY CONDITION FOR THE COMPANY TO BE ABLE TO MOVE FORWARD?
TIM SLOAN: THANKS FOR THE QUESTION, WILFRED. JOHN CERTAINLY DID. I THINK JOHN'S DECISION TO RETIRE IS ONE THAT, YOU KNOW, IS CLEARLY SAD FOR ALL OF US AT WELLS FARGO, BECAUSE WE THINK SO HIGHLY OF JOHN AND HIS LEADERSHIP IN THE COMPANY OVER THE LAST DECADE AND LONGER. BUT HE CONCLUDED THAT THIS WAS THE RIGHT THING TO DO FOR THE COMPANY TO ALLOW IT TO MOVE FORWARD, BECAUSE HE FELT THAT THE FOCUS ON HIM WAS BECOMING A DISTRACTION AND A HINDRANCE TO THE OPERATIONS OF THE BUSINESS.
FROST: DO YOU FEEL SORRY FOR HIM? HAS HE BEEN MADE A SCAPEGOAT, EVEN THOUGH HE MADE THIS DECISION HIMSELF?
SLOAN: WILFRED, JOHN IS A FRIEND OF MINE, AND I HAVE BEEN PRIVILEGED TO WORK WITH HIM AND FOR HIM FOR A GOOD PORTION OF MY CAREER. SO THERE IS NO QUESTION THAT I FEEL SORRY FOR HIM. AND -- BUT HAVING SAID THAT, HE WOULDN'T WANT ANY OF US TO FEEL SORRY FOR HIM, BECAUSE HIS FIRST -- YOU KNOW, HIS FOCUS HERE WAS TO DO THE RIGHT THING FOR WELLS FARGO, AND THAT'S WHY HE DECIDED TO RETIRE.
FROST: SO YOU SAID HE FELT IT WAS A NECESSARY CONDITION. IS IT A SUFFICIENT CONDITION, IN YOUR EYES, FOR THE COMPANY TO MOVE FORWARD? OR IS THERE MORE TO BE DONE?
SLOAN: OH, THERE IS A LOT TO BE DONE. WELLS FARGO IS A COMPANY THAT'S MADE UP OF 268,000 TEAM MEMBERS, ALL ACROSS THE COUNTRY AND ALL ACROSS THE WORLD. AND NO ONE INDIVIDUAL IS NECESSARILY GOING TO MAKE THE DIFFERENCE. WE ALL HAVE TO WORK TOGETHER TO RESTORE THE REPUTATION OF THE COMPANY, TO CONTINUE TO FOCUS ON MOVING THE COMPANY FORWARD. SO ONE PERSON, WHETHER IT'S JOHN STUMPF OR CANDIDLY, ME, IS NOT GOING TO MAKE THE DIFFERENCE.
FROST: WITH THAT IN MIND, WHAT ARE YOU PLANNING TO DO, PERSONALLY? BECAUSE CLEARLY, IN THE EYES OF THE PRESS AND LAWMAKERS, PARTICULARLY, NOT ENOUGH HAS BEEN DONE SO FAR. THERE WAS STILL A LOT OF PRESSURE ON YOU AS A COMPANY. WHAT MORE DO YOU PLAN TO DO THAT MR. STUMPF HASN'T YET?
SLOAN: WELL, JOHN SET IN MOTION A SIGNIFICANT NUMBER OF CHANGES, SOME OF WHICH WE HAVE ANNOUNCED, SPECIFIC, FOR EXAMPLE, IN OUR RETAIL BANKING BUSINESS, WE HAVE MADE SOME CHANGES IN TERMS OF OUR MANAGEMENT THERE. MARY MACK, WHO REPORTS TO ME IS NOW THE NEW HEAD OF OUR COMMUNITY BANKING BUSINESS. WE HAVE MADE CHANGES IN TERMS OF SOME OF OUR INCENTIVE COMPENSATION SYSTEM. WE HAVE REACHED OUT TO OUR CUSTOMERS TO MAKE SURE THAT THEY KNOW IF THEY HAVE ANY CONCERNS HOW THEY CAN CONTACT US. WE HAVE REMEDIATED AND CORRECTED ANY ERRORS THAT WE HAVE MADE FOR ANY OF OUR CUSTOMERS THAT WE'RE AWARE OF, AND WE'RE GOING TO CONTINUE TO FOCUS ON OUR CUSTOMERS AS WE HAVE FOR 164 YEARS TO BRING THEM THE BEST PRODUCTS AND SERVICE AND CONVENIENCE THAT WE CAN.
FROST: WE EXPECT, OF COURSE, BOTH THE SENATE AND THE HOUSE TO STILL PUSH FOR MORE ANSWERS. THEY'VE SAID THEIR INVESTIGATIONS ARE NOT OVER YET. SO ARE YOU PERSONALLY EXPECTING TO HAVE TO GO IN FRONT OF CONGRESS SOON IN PLACE OF MR. STUMPF, WHO WAS GOING TO BE CALLED BACK?
SLOAN: I DON'T KNOW THE ANSWER TO THAT, WILFRED. BUT YOU ARE CORRECT. THERE HAVE BEEN SOME ADDITIONAL REQUESTS FOR INFORMATION BY BOTH THE HOUSE AND THE SENATE. AND WE ARE CONTINUING TO COMPLY WITH PROVIDING THEM ANSWERS TO WHATEVER QUESTIONS THEY HAVE.
FROST: DO YOU FEEL THE LAWMAKERS -- AT TIMES HAVE BEEN A BIT OVER THE TOP, PARTICULARLY THAT SECOND HEARING AT TIMES WERE -- WERE THINGS SHOUTED AT MR. STUMP, STATEMENTS MADE, RATHER THAN QUESTIONS ASKED?
SLOAN: WELL, I THINK THAT WE WERE DISAPPOINTED THAT THE HEARINGS TURNED INTO A SITUATION IN WHICH THERE WERE MORE SPEECHES GIVEN THAN QUESTIONS ASKED BECAUSE WE FELT LIKE THERE WAS MORE ANSWERS THAT WE COULD HAVE PROVIDED. BUT, YOU KNOW, THOSE HEARINGS ARE OVER WITH, AND WE'RE MOVING ON.
FROST: AND MAY I JUST ASK, WHEN DID YOU PERSONALLY FIND OUT ABOUT THIS SCANDAL, CLEARLY IN YOUR ROLE AS CEO AND HEAD OF WHOLESALE BANKING. WAS IT SOMETHING YOU FOUND OUT ABOUT AT THE SAME TIME AS MR. STUMPF IN 2013?
SLOAN:YOU KNOW, WILFRED, THERE IS AN INDEPENDENT INVESTIGATION THAT'S GOING ON, ON BEHALF OF THE BOARD. AND I THINK -- AND I WANT TO BE VERY DEFERENTIAL TO THEIR PROCESS.
FROST: SURE.
SLOAN: I THINK THE IMPORTANT THING IS THAT JOHN HAS MADE A VERY IMPORTANT DECISION FOR THE COMPANY TO RETIRE. AND I'M IN A NEW ROLE, AND WE'RE GOING TO MOVE FORWARD.
FROST: MR. SLOAN, MY COLLEAGUE, MELISSA, IN THE STUDIO, HAS A QUESTION FOR YOU BEFORE – I'D LOVE TO ROUND IT OFF WITH A COUPLE CLOSING QUESTIONS.
SLOAN: SURE, THAT'S FINE.
LEE: TIM, JUST TO FOLLOW UP ON WILFRED'S POINT, DID THE FORMER HEAD OF RETAIL BANKING, CARRIE TOLSTEDT, DID SHE EVER REPORT DIRECTLY TO YOU?
SLOAN: SHE DID. I WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER IN NOVEMBER OF LAST YEAR, AND AT THAT POINT, CARRIE REPORTED DIRECTLY TO ME.
LEE: AND I PRESUME YOU DID READ "THE LOS ANGELES TIMES" BACK IN 2013, SO YOU WERE AWARE OF WHAT WAS GOING ON ALLEGEDLY AT THE BANK.
SLOAN: CORRECT. I RECALL THAT STORY. THAT'S CORRECT.
LEE: DID YOU THINK THAT IT WAS SOMETHING THAT -- I MEAN, YOU'RE A 29-YEAR VETERAN AT WELLS FARGO, AND I ASK THIS QUESTION, MAINLY BECAUSE INVESTORS ARE WONDERING IF YOUR APPOINTMENT AS CEO REALLY DOES TURN THE PAGE BEYOND THIS SCANDAL, TIM.
SLOAN: WELL, I THINK THAT THE ANSWER TO THAT IS WE'RE GOING TO DETERMINE, YOU KNOW, IN A FEW MONTHS, IN A FEW YEARS FROM NOW. I DON'T THINK ONE DAY OR AN HOUR AFTER THIS WAS ANNOUNCED THAT IS GOING TO ANSWER THAT QUESTION. SO WE'LL SEE.
FROST: MR. SLOAN, IF I JUMP BACK IN AGAIN, I SUPPOSE I WANTED TO ASK WHETHER YOU'RE HOPEFUL THAT THE EARNINGS THAT YOU'LL BE RELEASING ON FRIDAY WILL HELP YOU TO DRAW A LINE UNDER THE SHARE PRICE PRESSURE YOU'VE FELT. BECAUSE CLEARLY, THIS HAS BEEN A MASSIVE PR ISSUE FOR YOU, SO FAR. BUT DO YOU HOPE THAT FRIDAY WILL PROVE THAT THIS ISN'T A NUMBERS AND EARNINGS ISSUE FOR YOU?
SLOAN: WELL, I DO. BUT I NEED TO BE VERY CAREFUL, BECAUSE WE'RE TWO DAYS BEFORE WE ANNOUNCE OUR EARNINGS, AND ANY INTONATION IN MY VOICE OR EXCITEMENT OR DISAPPOINTMENT MIGHT LEAD ANYBODY TO CONCLUDE SOMETHING INAPPROPRIATE. YOU WILL FIND OUT FRIDAY MORNING. WE LOOK FORWARD TO TALKING TO OUR INVESTORS, JUST LIKE WE DO EVERY QUARTER.
FROST: AND ONE – SORRY, TWO MORE FINAL QUESTIONS. I JUST WANT TO ASK, IF THERE ARE FURTHER INVESTIGATIONS, PARTICULARLY INTO MR. STUMPF, POSSIBLY CRIMINAL, AS HAS BEEN CALLED FOR FROM CERTAIN SENATORS, DOES THE BANK'S OPTED DEPARTURE CONTINUE TO STAND CLOSELY BY HIM, OR IS HE ON HIS OWN?
SLOAN: WELL, I THINK THAT IS A TOPIC TO -- FOR THE BOARD TO REVIEW. I'M NOT AWARE OF ANY CRIMINAL INVESTIGATIONS THAT ARE GOING ON RIGHT NOW AS IT RELATES TO MR. STUMPF.
FROST: MY FINAL QUESTION FOR YOU, MR. SLOAN. YOU SAID IN A PRESS RELEASE THAT IT WAS, QUOTE, A PRIVILEGE TO HAVE THE OPPORTUNITY TO LEAD ONE OF AMERICA'S MOST STORIED COMPANIES. IS THIS A PROUD MOMENT FOR YOU OR A SAD MOMENT FOR YOU?
SLOAN: IT'S A SAD -- THAT'S A VERY FAIR QUESTION. IT'S A SAD MOMENT, BECAUSE JOHN STUMPF IS RETIRING IN A SITUATION THAT I THINK HE WOULD HAVE NEVER IMAGINED. AND HE HAS DONE SUCH A GREAT JOB IN MANAGING THIS COMPANY, NOTWITHSTANDING SOME OF THINGS THAT I THINK HE WISHED HE WOULD HAVE DONE DIFFERENTLY. THAT'S WHAT MAKES IT SAD. HAVING SAID THAT, I FEEL A GREAT RESPONSIBILITY, AND I'M LOOKING FORWARD TO BEING THE CEO OF THIS COMPANY. WE HAVE AN AMAZING -- 164-YEAR HISTORY. AND WE ARE NOT GOING TO ALLOW THE LAST FIVE WEEKS TO DEFINE THE SUCCESS -- THE FUTURE SUCCESS OF A VERY WELL REGARDED AND WELL KNOWN 164-YEAR OLD COMPANY.
FROST: MR. SLOAN, THANK YOU VERY MUCH FOR YOUR TIME. WE REALLY APPRECIATE THE CALL. CONGRATULATIONS ON YOUR APPOINTMENT ALBEIT IN THOSE SAD CIRCUMSTANCES YOU MENTIONED. MR. SLOAN, THE CEO OF WELLS FARGO JOINING US. MELISSA, I'LL SEND IT BACK TO YOU.
SLOAN: THANK YOU.
LEE: TIM SLOAN, THE NEW CEO OF WELLS FARGO AND OF COURSE OUR OWN WILFRED FROST FOR BRINGING THAT EXCLUSIVE TO "FAST MONEY."
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD, CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 386 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms including: CNBC.com; CNBC PRO, the premium, integrated desktop/mobile service that provides live access to CNBC programming, exclusive video content and global market data and analysis; a suite of CNBC mobile products including the CNBC Apps for iOS, Android and Windows devices; and additional products such as the CNBC App for the Apple Watch and Apple TV.
Members of the media can receive more information about CNBC and its programming on the NBCUniversal Media Village Web site at http://www.nbcumv.com/programming/cnbc.
For more information about NBCUniversal, please visit http://www.NBCUniversal.com.