The bank indicated Tim Sloan did not do enough to resolve the regulatory problems it faced in the wake of its fake-accounts scandal.
“This case illustrates a complete failure of leadership at multiple levels within the bank," a prosecutor says.
A regulator also fined John Stumpf $17.5 million for failures of leadership that contributed to the bank's fake-accounts scandal.
The bank's new CEO pledges to “make the fundamental changes necessary to regain the full trust and respect of all stakeholders."
The bank's shares fell 3% as net interest income dropped and it warned that 2019 expenses will be near the high end of its target.
The sale to Principal Financial reflects Wells Fargo strategy of divesting smaller business lines in the wake of its fake-accounts scandal.
The bank's third-quarter results "reflect the transformational changes we've been making at Wells Fargo," CEO Tim Sloan says.
Four risk management executives are retiring as part of the bank's reorganization in the wake of its fake-accounts scandal.
The bank is still struggling to put the fake-accounts scandal behind it, taking a $3.25 billion pre-tax expense for anticipated legal costs.
The beleaguered bank's shares fall 2.7% after it reports Q3 net income fell to $4.6 billion from $5.6 billion one year ago while EPS misses estimates.
The bank says it may have created up to 3.5 million accounts without customers’ authorization, well in excess of its previous 2.1 million estimate.
The bank reported net income was flat at $5.5 billion for the first quarter while revenue fell to $22 billion from $22.6 billion a year earlier.
