8/5/2020, 6:45 AM (Source: TeleTrader)
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Wells Fargo to slash spending on consultants - report

Wells Fargo is planning to severely reduce its spending on consultants after employees of the bank expressed concerns over its reliance on other companies. The final call came from CEO Charlie Scharf who said that the bank was too dependent on consultancies, the Financial Times reported on Wednesday.

The backlash came after a series of projects that were supposed to help the bank deal with risk management, compliance processes and reorganization were led by McKinsey, PwC, Oliver Wyman, Promontory Financial Group, Deloitte, Accenture and EY. The practice meant that, in the second quarter alone, Wells Fargo paid consultants around $760 million.

Scharf joined Wells Fargo in February after US regulators found out the company had created fake bank accounts in order to meet a sales quota ever since 2002.

Breaking the News / VP