Wells Fargo & Co. is reshuffling its executive suite, with Chief Operating Officer Scott Powell set to take over as chief risk officer when Derek Flowers retires in mid-January 2027. The transition, announced Tuesday, marks a significant leadership change at a bank still emerging from years of regulatory oversight.
Flowers, who has spent nearly three decades at the San Francisco-based lender, has served as CRO since 2022. He oversaw the risk function during a period when the bank resolved 14 consent orders tied to its 2016 fake-accounts scandal and other issues. His tenure included the Federal Reserve's removal in June 2025 of the asset growth cap that had limited Wells Fargo's balance sheet to roughly $1.95 trillion since 2018.
CEO Charlie Scharf praised Flowers for his role in strengthening the bank's risk and control framework, saying in a statement that Flowers and Powell worked closely to advance the bank's transformation. Powell, 62, joined Wells Fargo in December 2019 as one of Scharf's first major hires, arriving from Santander Holdings USA, where he led a similar regulatory turnaround. He previously held senior roles at JPMorgan Chase, including head of Consumer Banking and Lending Operations.
As COO, Powell has overseen global operations, control management, regulatory relations, and customer remediation efforts. His portfolio also included corporate security and strategic sourcing. His elevation to CRO comes as the bank looks to scale its operations with a newly unencumbered balance sheet, which now stands at approximately $2.3 trillion in assets.
The timing is critical for the wealth management division, which houses more than 12,000 financial advisors under the Wells Fargo Advisors brand. The CRO sets the tone for risk appetite, compliance oversight, and product governance across the firm's Wealth & Investment Management business. Advisors and clients will be watching whether the risk culture Flowers helped build can hold as the bank pursues renewed growth.
Flowers joined Wells Fargo in 1995 and rose through credit and risk roles, including chief credit officer and chief market risk officer, before becoming CRO in 2022. He succeeded Amanda Norton, who retired. In a statement, Flowers expressed pride in the team's accomplishments and confidence in the bank's risk culture.
Wells Fargo has not yet named Powell's successor as COO, saying an announcement will come in the near future. The bank's recent moves have drawn attention from the advisor community, including a departure of a Wichita retirement team to LPL and a wave of wirehouse advisor moves that included Wells Fargo additions.
Industry observers note that Powell's background in operational turnarounds could signal a continued focus on compliance and risk discipline. His appointment also aligns with broader trends in the wealth management industry, where firms are investing in technology and leadership, as seen in LPL's hiring of a Wells Fargo tech veteran and Hightower's new president.
The transition will be closely watched by financial advisors and investors, as Wells Fargo seeks to balance growth ambitions with the regulatory lessons of the past. The bank's ability to maintain a strong risk culture while expanding will be a key test for Powell in his new role.
