Before too much is read into this move, Wells Fargo’s spokesman has clarified that it wasn’t in response to its December resolution planning process failure.
The third largest U.S. bank by assets, Wells Fargo & Co, has disclosed that it would be merging its international business with its wholesale banking unit that caters to corporate customers.
Richard Yorke, who used to previously head Wells Fargo’s international business will now be the CEO of its wholesale banking business.
Incidentally, the bank derives just 4% of its revenues from outside of the United States, comparatively smaller than its rivals, including Bank of America Corp, JPMorgan Chase & Co and Citigroup Inc.
However, with Wells Fargo’s acquisition of GE’s dis-investments last year, its international presence has grown much larger.
The bank now operates in 42 countries and territories, has an employee strength of nearly 3,000 in Europe, Asia and the United Kingdom.
Since Wells Fargo failed its resolution planning process in December 2016, it will have to submit new plans to regulators by March.
That responsibility will now fall on Yorke, who will assume an interim position, as a senior member of a team of executives who will guide the company for its bankruptcy plan.
Scott Zaret, an executive from Wells Fargo’s risk division will join this team on a permanent basis.
Elias has clarified that the decision to relocate the bank’s international business inside the wholesale unit wasn’t in response to its December resolution planning process failure.