Warren Buffett has given his seal of approval to the selection of Tim Sloan as Wells Fargo & Co.'s new CEO, telling CNN:"I think Tim Sloan's exactly right."

That's a powerful voice of support from Wells Fargo's largest shareholder.

Former Wells CEO John Stumpf left the bank Oct. 12 in the wake of the fake accounts scandal in which as many as 2 million deposit and credit accounts were opened without customer authorization.

Buffett told CNN's Poppy Harlow on Friday that Wells (NYSE: WFC) -- Colorado's largest bank -- made a "terrible mistake" by keeping in place sales goals that "corrupted people."

"It was a dumb incentive system," Buffett said.

Read more at the Denver Business Journal: http://bit.ly/2g7Hnf3