Wells Fargo CEO John Stumpf is out after a scandal over fake accounts

• Matt Turner and Bob Bryan

• 17h
• 48,079
 
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John Stumpf. Win McNamee/Getty Images

John Stumpf, the chairman and CEO of Wells Fargo, is retiring, effective immediately.

Stumpf has recently come under fire for a scandal in which bank employees opened 2 million credit and debit card accounts without customers' knowledge.

His successor, Tim Sloan, was chief operating officer of the firm and has been with the bank for over 25 years. Sloan has primarily worked in commercial real-estate lending at the bank and took the COO position in November.

The bank also appointed Stephen Sanger nonexecutive chair, splitting the roles of CEO and chairman. Elizabeth Duke has been named vice chair.

Stumpf's departure comes just two weeks after lawmakers, most notably Sen. Elizabeth Warren, called for the CEO's resignation. Lawmakers had also pushed for splitting of the chairman and CEO roles.

Warren also called for a criminal investigation of Stumpf, claiming that both the Department of Justice and Securities and Exchange Commission should look into whether the CEO knowingly misled investors by not disclosing the opening of the fake accounts in financial statements. In an interview with CNBC following the news, newly-appointed CEO Tim Sloan said he was not aware of any criminal investigations of Stumpf.

Wells Fargo's shares rose 1.6%, to $46.05, following the news.

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Here's the statement:

"Wells Fargo & Company (NYSE:WFC) announced today that Chairman and Chief Executive Officer John Stumpf has informed the Company's Board of Directors that he is retiring from the Company and the Board, effective immediately. The Board has elected Tim Sloan, the Company's President and Chief Operating Officer, to succeed him as CEO, and Stephen Sanger, its Lead Director, to serve as the Board's non-executive Chairman, and independent director Elizabeth Duke to serve as Vice Chair. Sloan also was elected to the Board.

"Sloan's appointment to CEO and election to the Board are effective immediately. He will retain the title of President.

"Sanger said, 'John Stumpf has dedicated his professional life to banking, successfully leading Wells Fargo through the financial crisis and the largest merger in banking history, and helping to create one of the strongest and most well-known financial services companies in the world. However, he believes new leadership at this time is appropriate to guide Wells Fargo through its current challenges and take the Company forward. The Board of Directors has great confidence in Tim Sloan. He is a proven leader who knows Wells Fargo's operations deeply, holds the respect of its stakeholders, and is ready to lead the Company into the future.'

"Stumpf, a 34-year veteran of the Company, joined Wells Fargo in 1982 as part of the former Norwest Bank, becoming Wells Fargo's CEO in June 2007 and its chairman in January 2010.

"'I am grateful for the opportunity to have led Wells Fargo,' Stumpf said. 'I am also very optimistic about its future, because of our talented and caring team members and the goodwill the stagecoach continues to enjoy with tens of millions of customers. While I have been deeply committed and focused on managing the Company through this period, I have decided it is best for the Company that I step aside. I know no better individual to lead this company forward than Tim Sloan.'

"Sloan said, 'It's a great privilege to have the opportunity to lead one of America's most storied companies at a critical juncture in its history. My immediate and highest priority is to restore trust in Wells Fargo. It's a tremendous responsibility, one which I look forward to taking on, because of the incredible caliber of our people, and the opportunity we have to impact the lives of our millions of customers around the world. We will work tirelessly to build a stronger and better Wells Fargo for generations to come.'

"Sloan joined Wells Fargo 29 years ago, launching a career that would include numerous leadership roles across the Company's wholesale and commercial banking operations, including as head of Commercial Banking, Real Estate and Specialized Financial Services. He became president and COO in November 2015, when he assumed leadership over the Company's four main business groups: Community Banking, Consumer Lending, Wealth and Investment Management and Wholesale Banking. Previously, he headed the Wholesale Banking group after serving as the Company's Chief Financial Officer and, prior to that, as the Company's Chief Administrative Officer.

"Sanger has been a member of the Wells Fargo Board since 2003, serving as its Lead Director since 2012. Sanger also chairs the Governance and Nominating Committee and is a member of Human Resources Committee and Risk Committee. He was CEO of General Mills, Inc., a leading packaged food producer and distributor, from 1995 until 2007. He served as chairman of General Mills from 1995 to 2008. He also serves on the board of Pfizer Inc.

"Duke has been a member of the Wells Fargo Board since 2015. She served as a member of the Board of Governors of the Federal Reserve System from 2008 to 2013, where she served as Chair of the Federal Reserve's Committee on Consumer and Community Affairs and as a member of its Committee on Bank Supervision and Regulation, the Committee on Bank Affairs, and the Committee on Board Affairs. She also previously held senior management positions at banks including Wachovia and SouthTrust."

SEE ALSO: ELIZABETH WARREN RIPS INTO WELLS FARGO CEO: 'You should be criminally investigated'

Italy rules out state aid or nationalisation of Monte Paschi - minister

• Reuters

• Oct. 12, 2016, 9:41 AM
• 164

ROME, Oct 12 (Reuters) - Italian Economy Minister Pier Carlo Padoan on Wednesday ruled out any state intervention or a so-called "bail-in" to support the troubled lender Banca Monte dei Paschi di Siena.

"No measures of public support or nationalisation are foreseen (for Monte Paschi), and any talk about opening a procedure for a bail-in is based on unfounded speculation," Padoan said during question time in parliament.

Monte dei Paschi has agreed to a new restructuring plan based on a 5-billion-euro ($5.60 billion) capital boost and the sale of 28 billion euros worth of bad loans, but there has been speculation that the cash increase may fall short. ($1 = 0.8928 euros) (Reporting by Steve Scherer and Giuseppe Fonte; Editing by Crispian Balmer)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

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China overtakes U.S. again as world's top crude importer

A general view of a crude oil importing port in Qingdao, Shandong province, November 9, 2008. REUTERS/Stringer

By Meng Meng and Florence Tan | BEIJING/SINGAPORE

China imported record volumes of crude oil last month, eclipsing the United States as the world's top buyer of foreign oil as Beijing's state reserves shipped in cheap crude to fill new storage tanks.

September's crude imports rose 18 percent from a year earlier to 33.06 million tonnes or 8.04 million barrels per day (bpd) on daily basis, customs data showed.

The buying outpaced the U.S. four-week average assessed by the U.S. Energy Information Administration of 7.98 million bpd at the end of September.

It marked the second time this year - but the third month in the past twelve - that China's imports have overtaken the United States, and reflected contracts signed in July when renewed selling pressure pushed crude below $42 a barrel. Oil has since recovered to around $50 a barrel.

The shipments also arrived as Chinese refineries entered the final stretch of their annual maintenance season, which typically takes place in the third quarter.

With U.S. plants' repair work extending into this month, the world's largest economy could retake pole position in October, analysts said.

China's strategic reserve is preparing to start filling late this year newly-built storage tanks that can take some 19 million barrels of crude, or about three days worth of imports, traders said.

"The increase was mainly driven by stocking activities at some reserve sites," said Harry Liu, associate director of oil markets with IHS Energy, who said August and September volumes were higher than he expected.

That contrasts with earlier in the year when China's independent refiners known as "teapots" were the driving force behind the imports.

Analysts from BMI research expected China's crude imports to remain elevated for the rest of the year due to falling production, expanding storage capacity and a seasonal uptick in demand over the winter months.

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Over the first nine months, import volumes rose 14 percent to 284 million tonnes, or 7.55 million bpd, according to the data. On a cumulative basis, the United States is still the biggest importer with more than 8 million bpd of imports.

China's refined fuel exports in September rose 21.1 percent from a year ago to 4.3 million tonnes, near the record high 4.57 million tonnes notched in July and well up on August's 3.7 million tonnes.

The month-on-month gain rekindled worries of a supply glut in fuel products and might weigh on oil demand in the fourth quarter, analysts said.

(Reporting by Meng Meng and Florence Tan; writing by Josephine Mason; Editing by Tom Hogue and Richard Pullin)

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Anglo close to selling Australian coal assets to Apollo consortium - sources

SYDNEY/LONDON Anglo American is expected to finalize a $1 billion-plus sale of its Australian coal assets to a group headed by private equity group Apollo Global Management in the coming weeks, three sources with knowledge of the deal said. "Anglo American and Apollo entered into a two-week exclusivity period due to expire next week," said one of the sources in continuous contact with advisers to the deal. "We think it is going to go to Apollo next week."

China's trade data has delivered some unwanted news

DAVID SCUTT 

OCT 13, 2016, 1:25 PM  

Photo by Kevin Frayer/Getty Images

Chinese trade data, continuing the theme seen in recent years, has yet again underwhelmed expectations in September.

After a reasonable performance in August, it’s proven to be a major disappointment for financial markets.

According to China’s Customs Bureau, the value of exports dropped 10% in the year to September in US dollar terms, falling short of forecasts for a decline of 3.0%.

It was also a significant deterioration on the 2.8% decline registered in August, and the steepest annual decline since January.

Reflecting not only weaker commodity prices but also tepid external demand, the value of exports between January to September fell 7.5% compared to the same period in 2015.

In the year to September, the Chinese yuan weakened by 5.5% against the US dollar, providing some perspective on the weakness in the export figures.

The weak figure has, in part, been amplified by weakness in the Chinese currency.

Following the release of the data, a spokesman from the Customs Bureau said that the impact of currency movements were limited.

The Bureau also said that China was facing “intensified” trade protectionism.

Imports, after rising in year-on-year terms for the first time since October 2014 in August, also slipped back into contractionary territory, falling 1.9% from a year earlier.

That too missed forecasts for a gain of 3.0%, and was a reversal from the 1.5% lift recorded previously.

So far this year, the value of imports is down 8.2% compared to the same period in 2015.

Underlining that much of that weakness in this figure was due to falling commodity prices, imports of crude oil, iron ore and copper in volume terms rose by 14%, 9.1% and 11.8% between January to September compared to the same period in 2015.

Largely as a result of the weak export figure reported, the trade surplus narrowed to $US41.99 billion, the smallest seen since March.

The disappointing trade report kicks off what will be a busy period for Chinese economic data.

On Friday consumer and producer price inflation figures for September will be released.

That will be followed next week by retail sales, industrial output and urban fixed asset investment figures for September, along with the all-important Q3 GDP release, on Wednesday.

Monetary figures from the People’s Bank of China, usually released alongside the GDP report, are also scheduled to hit.

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'His death would plunge the country back into political crisis'

• Elena Holodny
 

• Oct. 11, 2016, 11:28 AM
• 15,450
 
• 3

A well-wisher holds a picture of Thailand's King Bhumibol Adulyadej at the Siriraj hospital where he is residing, in Bangkok, Thailand, June 9, 2016. Athit Perawongmetha/Reuters

The Thai King is in poor health — and that could pose risks to the country's political and economic situation.

Palace officials recently stated that King Bhumibol Adulyadej's health is "not stable," and that he was being prepped for haemodialysis, which is used to treat kidney failure.

"The failing health of the king adds another layer of uncertainty to an already highly unpredictable situation," argued Capital Economics' Krystal Tan and Gareth Leather in a note. 

The situation "poses a key risk to the country’s economy. His death would plunge the country back into political crisis, which in turn could push the economy into recession."

The military has twice overthrown the democratically elected government in Thailand over the last ten years — with the more recent one in May 2014. During that timeframe, the 88-year old monarch who has reigned since 1946 has played a  "pivotal role... in maintaining the balance of power in Thailand's volatile political environment," according to the BBC.

As such, Tan and Leather argue that tensions could pick up after his death. Moreover, while economic growth has recovered since the coup in 2014, the economy and sentiment could be hurt by another rise in political uncertainty. 

"...it is difficult to be upbeat about Thailand’s medium-term outlook until the political picture becomes clearer. Unfortunately, with the king’s health rapidly deteriorating, the situation may get worse before it gets better," the analysts concluded.

The Thai baht is down by 0.9% at 35.460 per dollar as of 11:13 a.m. ET.

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Apple's new London headquarters is part of a $17 billion megadevelopment — take a look inside

• Leanna Garfield
 

• 10h
• 102,662
 
• 2

A rendering of the revitalized Battersea Power Station in London.Battersea Power Station

Apple is moving its UK headquarters to the Battersea Power Station — London's iconic brick building that Pink Floyd portrayed on the cover of its 1977 album "Animals." The station's redevelopment is part of an estimated $16.5 billion megadevelopment in the city.

The tech giant will relocate its 1,400 UK employees to the building after its $8.8 billion restoration is completed in 2021.

Located in southwest London's Nine Elms neighborhood, the former power station will serve as the center of the larger redevelopment project (dubbed the Battersea Power Station development), which features high-end apartments, hotels, roof gardens, parks, and other offices. It will be one of the most expensive developments in in the city's history.

A Malaysian consortium and architecture firm WilkinsonEyre will lead the power station's development, which includes converting the building into offices, shops, event space, theater, and luxury condos.

Here's what it will look like.

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Located in southwest London, the Battersea Power Station borders the Thames River.

Battersea Power Station

Apple will move into the station's former boiler rooms, which were decommissioned in 1983, WilkinsonEyre's director, Sebastien Ricard, tells Business Insider.

Battersea Power Station

As the only company signed on so far, Apple will take up 40% of the power station's available office space.

Battersea Power Station

The 500,000 square-foot space, spread over six floors, will have exposed brick and an industrial aesthetic."It follows the trend toward making authentic-looking workspaces rather than sterilized, 1980s-style spaces," Ricard says.

Battersea Power Station

Apple's entrance will have a large concrete atrium. Three glass elevators will take employees where they need to go.

Battersea Power Station

For a view of the entire city, they will also be able to ride a glass elevator inside one of the station's chimneys up to a viewing deck.

Battersea Power Station

In addition to offices, the building will house shops, a theater that seats 2,000 people, and event spaces.

Battersea Power Station

It will also feature 197 luxury apartments, 34 two-story villas, and two penthouses. The apartments will cost up to $30 million. Ricard says the station's redesign process "was a lot like designing a mini city."

Battersea Power Station

Source: The Guardian

As the largest brick building in London, the power station is part of the city's fabric, he adds. The building appeared in "The Dark Knight" and "The King's Speech."

Battersea Power Station

Nine Elm's larger development project, which centers around the power station, will happen in nine phases.

Apple's offices are marked in blue.Battersea Power Station

The first phase consists of apartments and a five-star hotel — in two separate buildings— that are set to open by 2018. The power station restoration is the second phase.

Battersea Power Station

Some Londoners have criticized the Nine Elms project as being aimed more toward wealthy foreign buyers than locals. Much of the $15 billion investment has poured in from foreign developers, according to The Guardian.

Battersea Power Station

Source: The Guardian

Ricard hopes that the power station restoration will do the iconic building justice.

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