Please ensure Javascript is enabled for purposes of website accessibility

Major Regulatory Executive to Depart Wells Fargo

By Bram Berkowitz - May 27, 2021 at 2:15PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Sarah Dahlgren, head of regulatory affairs at the bank, reportedly is stepping down to pursue new opportunities.

The chief regulatory affairs officer at Wells Fargo (WFC -1.30%) is stepping down to purse other opportunities, American Banker reported recently.

Sarah Dahlgren, head of regulatory affairs at the bank, reportedly told management about her decision earlier this month. Steve Manzari, head of regulatory engagement at Wells Fargo's consumer bank, will serve as interim head of regulatory relations.

According to Dahlgren's LinkedIn profile, the head of regulatory relations is responsible for the overall strategy for regulatory engagement, regulatory communications in terms of responses to regulators, and making sure the bank follows firmwide requirements. Dahlgren joined the bank in 2018 after serving as a partner for management consultancy McKinsey & Company for two years, and working for the Federal Reserve Bank of New York for 25 years before that.
Picture of Wells Fargo logo on building.

Image source: wells Fargo.

She came aboard right around the time the Federal Reserve imposed a $1.95 trillion asset cap on Wells Fargo as part of the punishment for the bank's phony-accounts scandal. In 2016, it came to light that employees at Wells Fargo had been opening bank accounts and applying for credit cards on behalf of customers without their authorization.

Since then, it has been a difficult road for the bank in trying to put the scandal behind it. The asset cap, which is currently preventing Wells Fargo from growing its balance sheet, still lingers.

In February, Bloomberg reported that the Federal Reserve apparently approved the bank's proposal for overhauling its risk-management and governance structure, a major step toward getting the asset cap removed. 

With Wells Fargo still in a fragile spot on its regulatory issues, it's always a bit unsettling to see a major regulatory executive leave. But right now there is no reason to suspect Dahlgren left for any reason but to take another job.

Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wells Fargo & Company Stock Quote
Wells Fargo & Company
WFC
$43.19 (-1.30%) $0.57

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.