Wells Fargo's general counsel Allen Parker.

Only hours after news reports suggested Wells Fargo & Co. general counsel and interim chief executive Allen Parker might become the troubled bank's next CEO, the organization instead chose banking veteran Charles Scharf.

Scharf, who is leaving as CEO of Bank of New York Mellon after less than two years in the job, made a point at Friday's press conference to praise Parker's work as interim CEO for the past six months and include him in future plans.

Scharf said, "From outside it is clear he has done a wonderful job of providing strong leadership through a time of uncertainty. Given his experiences and accomplishments, I know we will work closely together as we move forward."

In a press release, the bank made a point of saying Parker would continue to serve as interim CEO until Scharf comes on board Oct. 21, and then return to his general counsel role to "support the transition as a key member of the company's leadership team."

For his part Parker said in the release, "Over the last six months, I have gained an even greater understanding as to what an extraordinary company Wells Fargo is. … I am proud of the progress we have made together, and I look forward to working with Charlie to ensure a seamless transition and continuation of our progress."

Parker, who was not available for comment Friday, had repeatedly been mentioned in the industry as a possible choice for the permanent CEO job. Shortly before the announcement on Scharf, the Financial Times of London wrote Sept. 26 that investors believed Parker was "increasingly likely to be given the role permanently."

But the board, under pressure by U.S. bank regulators to change the culture that led to several scandals, seemed determined to bring in a candidate from outside the bank.

Wells Fargo board chair Betsy Duke also praised Parker's work Friday.

"On behalf of the board of directors, I wish to thank Allen for his exemplary leadership during this transition. He has continued to move the company forward on our top priorities in a focused and transparent way. His leadership through this time has been invaluable for our stakeholders, particularly for our 263,000 team members," Duke said.

At the press conference, she made a point of saying, "Allen ran it as if he were CEO for the long term. He has made sure nobody put their pencils down, everyone had their eyes clearly focused on the work."

Scharf, who also served as CEO of Visa from 2012 to 2017, said his first priority will be to complete the regulatory reforms that Parker and his legal team have already begun.

Scharf said he plans to remain based in New York rather than move to Wells Fargo's San Francisco headquarters. When asked about that arrangement at the press conference, Scharf said, "I will spend time wherever it is necessary for me to be."

Parker moved to San Francisco from New York when he was named general counsel in 2017. While he lacks CEO experience, he had served as the presiding partner at Cravath, Swaine & Moore for several years.

Because of his reputation for integrity, the bank hired him as general counsel to deal with the fallout from numerous scandals, including one involving 3.5 million fake customer accounts.

Parker has since led the bank through state and federal investigations, fought class action lawsuits, and negotiated settlements while rebuilding a badly damaged legal department and shoring up a riddled risk-and-compliance system, before being tapped as the interim CEO in March.