Patriarca, Key Thrift Regulator, to Be New Wells Fargo Liaison

In a surprise move, Wells Fargo & Co. on Wednesday said it hired the federal government’s top thrift regulator in the West as its principal liaison with bank regulators.

The move to hire Michael Patriarca, 41, for the new position of “risk control officer” comes as friction between Wells Fargo and federal regulators from the Office of the Comptroller of the Currency has grown over the quality of the San Francisco bank’s real estate loan portfolio and loans that financed corporate buyouts. The bank posted a $231-million fourth-quarter loss after an examination by regulators, who are scheduled to review the bank’s real estate loans again within a few months.

Patriarca, who was unavailable for comment, is expected to help smooth over the relationship with regulators and monitor Wells’ progress in dealing with its troubled loans.

His leaving was generally unexpected, although industry sources said Patriarca had been approached recently to join the Pasadena office of the Secura Group, a consulting firm based in Washington, D.C., headed by former Federal Deposit Insurance Corp. Chairman William Isaac.

Since 1986, Patriarca has headed the San Francisco office of what is now the Office of Thrift Supervision. Patriarca earned a reputation as a highly competent and tough regulator in supervising some of the nation’s largest S&Ls;, earning praise from a number of thrift executives and officials in Washington. Timothy Ryan, the nation’s top thrift regulator, lauded Patriarca as “aggressive and fair” in his dealings with the West’s thrifts.

Ryan said he will appoint a temporary chief for the San Francisco office and a permanent one later.