Wells Fargo CEO John Stumpf to Resign in Wake of Scandal

October 12, 2016
ABC 7 News

Wells Fargo's embattled CEO is out. John Stumpf is retiring effective immediately. The move comes as the San Francisco bank has been mired in scandal over the creation of millions of unauthorized accounts.

Stumpf has retired from the company and the board. He submitted a letter informing the bank Wednesday morning, a move that reportedly surprised the bank's board of directors. Stumpf had led Wells Fargo since 2007.

In a statement, Wells Fargo's lead director Stephen Sanger, says Stumpf "believes new leadership at this time is appropriate to guide Wells Fargo through its current challenges and take the company forward."

Wells Fargo's Chief Operating Officer Tim Sloan, will succeed Stumpf as CEO.

East Bay congressman mark Desaulnier called on Stumpf to step down two weeks ago.

"I think it's a first big step," Desaulnier said. "I think this is an acknowledgment that the public doesn't have confidence in Wells Fargo, which I think is a shame. It's a great institution. I used to bank with them. But I wouldn't bank with them again until I knew they changed the culture."

Stumpf, who joined Wells Fargo in 1982, successfully navigated the company through the financial crisis of 2008, keeping it free of scandal.

But the bank's years-long practice of low-level employees opening fake accounts to meet sales quotas ignited widespread anger, from customers to politicians.

He has appeared before congress twice since the scandal broke.

Peninsula attorney Joseph Cotchett says a retirement doesn't go far enough.

He filed a lawsuit against Wells Fargo on behalf of shareholders... (To read the entire article, please click HERE)