Wells Fargo CEO John Stumpf steps down amid sales scandal
Wells Fargo’s embattled CEO John Stumpf is stepping down as the nation’s second-largest bank is roiled by a scandal over its sales practices.
The San Francisco bank said Wednesday that Stumpf is retiring effective immediately and also relinquishing his title as chairman. It had earlier announced that Stumpf, the bank’s CEO since 2007, will forfeit $41 million in stock awards.
Wells Fargo’s chief operating officer, Tim Sloan, will succeed Stumpf as CEO.
Stumpf faced congressional hearings and consumer wrath last month after Wells Fargo was found to have opened millions of unauthorized bank accounts.
Wells Fargo & Co. had been wellknown in the banking industry for its ability to sell customers multiple product. The company has agreed to pay $185 million to settle allegations that its workers opened millions of accounts without customers’ permission to reach sales targets.