Warren Buffett demands that Wells Fargo look for his next CEO off Wall Street while the bank looks for a candidate for Tim Sloan.
In an interview with the Financial Times published on Sunday, Buffett said Wells Fargo should not consider JP Morgan or Goldman Sachs as recruiting ground for his next leader.
Buffett said that although there are many qualified candidates on Wall Street, they would be over-noticed by Congressional leaders.
"There are many good people who run it, but they will automatically draw the rage from a significant percentage of the Senate and the US House of Representatives, and that's just not smart," Buffett said.
His comments come just over a week after Tim Sloan's resignation as CEO and president of Wells Fargo. Sloan had been hammered by members of the congress over a scandal in which employees had created millions of counterfeit accounts to reach sales quotas. Shortly before Sloan's resignation was announced, Buffett told CNBC that he was supporting Sloan "1
"I do not want him to have his job, I'm very empathic for anyone who gets into a big problem and a very, very large and politically sensitive institution," Buffett said at the time.
The investor told CNBC that Sloan had informed him that he intended to resign. Buffett said he had not talked to anyone at the blackboard, and the move was "out of the blue."
The board of Wells Fargo said it would seek out Sloan's replacement outside the bank. Allen Parker, the bank's general counsel, has taken over as interim CEO while Wells conducts his search.
Buffett said Wells Fargo remained strong despite the consequences of the fake account scandal.
"If you look at Wells, you've got a lot of issues with this whole thing, but they're not losing customers," Buffett told the Financial Times.
Wells Fargo shares have risen nearly 6% since the beginning of the year. The bank's stock closed at $ 48.78 on Friday.
Correction: This story has been updated to remove a wrong title for Tim Sloan. He was CEO and President of Wells Fargo before resigning in March.