Outgoing Wells Fargo & Co (NYSE: WFC) CEO Tim Sloan should be replaced with a permanent CEO with a background that isn't from Wall Street, major shareholder Warren Buffett told the Financial Times in an interview over the weekend.
Sloan resigned in March amid pressure from U.S. lawmakers and regulators, and general counsel Allen Parker stepped in as interim CEO.
Qualified bank executives will "draw the ire" of many senators and other lawmakers, and "that's just not smart," Buffett said.
One out of every three U.S. households "does business with Wells one way or another," so the company isn't "losing any customers to speak of," Buffett said.
But the company is losing customers from the public sector, he said.
Why It's Important
CNBC's Becky Quick said on "Squawk Box" Monday that Buffett's comments shouldn't necessarily be viewed as dictating how the bank should proceed.
Quick has interviewed Buffett on many occasions and said the Financial Times interview is merely his opinion on how the bank might want to proceed to avoid continued scrutiny from lawmakers.
Wells Fargo is looking for a permanent CEO, and the bank's chair Betsy Duke said it is only considering candidates from outside of the company, according to the Financial Times.
Wells Fargo shares were down 0.13 percent at $48.72 at the time of publication Monday.
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