Wells Fargo, the San Francisco-based lender that’s building out its investment bank, has hired free-speaking bank analyst Mike Mayo to research the biggest U.S. financial firms.
Mayo, 54, will join as a New York-based managing director, reporting to Todd Wickwire and Sam Pearlstein, co-heads of equity research, Wells Fargo said Monday. Mayo will oversee U.S. large-cap bank research, the bank said.
“Mike’s stature in the industry is well-recognized,” Diane Schumaker-Krieg, global head of research for Wells Fargo’s investment bank, said in a news release. “We are thrilled to have such an influential voice in this critical sector join our growing platform.”
Mayo has earned a reputation for being unafraid to challenge bank executives. In recent years, he’s criticized Citigroup and Bank of America for missed goals and uncertain targets that prevent investors from being able to hold management accountable. He’s been on the job market since February, when his employer,
Less than 24 hours after his dismissal, Mayo appeared at a JPMorgan Chase event, calling himself a “ free agent” as he questioned Chief Executive Officer Jamie Dimon about the bank’s brand. “You’re a brand, too — Mike Mayo,” Dimon replied. The banker went on to recall how he once ordered his staff at a JPMorgan predecessor to read a critical report Mayo wrote on their business, telling them “read his tome because he is right about every single thing in there.”
Mayo is the author of “Exile on Wall Street: One Analyst’s Fight to Save the Big Banks from Themselves.” He’s also worked at UBS Group AG, Lehman Brothers Holdings, Credit Suisse Group and Deutsche Bank. He began his career as a Federal Reserve analyst in 1988.
Mayo replaces Matt Burnell, an analyst who had been covering banks for Wells Fargo after the firm purchased his company, Wachovia, in the depths of the financial crisis. Burnell “has decided to pursue other opportunities outside the bank,” Jessica Ong, a spokeswoman for Wells Fargo, said in an email.
In an interview, Mayo said he looked at about a dozen options and conducted extensive due diligence on Wells Fargo’s research offering before making his decision. The bank also has agreed to hire his team, which includes three other people, he said.
“In the end it comes down to one word: impact,” Mayo said. “We think we can have a strong impact at Wells Fargo. They are 100% on board with how we have done the job in the past.”
