Wells Fargo's corporate responsibility chair resigns from private equity firm
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Wells Fargo bank teller machines are seen in San Francisco, California, U.S. October 10, 2013. REUTERS/Robert Galbraith /File Photo
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
NEW YORK (Reuters) - Federico Pena, a member of Wells Fargo’s board of directors and chairman of its corporate responsibility committee, has resigned from an advisory position with Vestar Capital Partners, a private equity firm.
In an interview on Sunday, Pena told Reuters his resignation had nothing to do with recent events at the bank, which has been reeling from a sales scandal that has slammed its shares and led to the resignation of Chief Executive and Chairman John Stumpf.
The corporate responsibility committee, which is meant to monitor the bank's reputation, has come under fire since it emerged that Wells Fargo's branch staff created as many as 2 million accounts without customers' knowledge to meet internal sales targets.
Pena said his tenure as head of the committee had not given him enough time to catch the sales problems, which stretched back five years.
"I only spent one year as the head of the committee," said Pena, who served as energy secretary and transportation secretary during Bill Clinton's presidency.
Pena said he resigned his advisory role at Vestar because he did not want his affiliation with the private equity firm to affect his advisory role at the Colorado Impact Fund, a venture capital fund.
The Securities and Exchange Commission is scrutinizing the private equity industry more closely, including what sort of confidential information its staff members and affiliates have, he added.
A spokeswoman for Vestar declined to comment on Pena’s departure.
Vestar also owns proxy advisory firm Institutional Shareholder Services, or ISS, which advises shareholders whether to approve members of a company’s board of directors in votes at their annual meetings.
Wells Fargo directors are expected to face a stormy shareholder meeting next year, but Pena said Vestar's ownership of ISS played no role in his decision and he had no connection to ISS.
A Vestar spokeswoman said: “ISS research is completely independent of Vestar.” ISS had no immediate response.
(Reporting by Dan Freed; Editing by Carmel Crimmins and Peter Cooney)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Herbalife (HLF) Provides Q4, FY17 Guidance in Memorandum for $1.325B Credit Facility; Lowers FY17 Sales Guidance
- Trump, Israel's Netanyahu to speak at 1:30 pm ET: White House
- TAC Capital Files 13D on Bravo Brio Restaurant (BBRG); Adam Nominates 3 to Board
Create E-mail Alert Related CategoriesReuters
Related EntitiesWells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!