In the middle of an embarrassing fake account fiasco that may have lasted a decade before being shut down by federal regulators, Wells Fargo CEO John Stumpf has decided that maybe it’s for the best that he “retire” from the bank’s top spot.
According to Wells Fargo, Stumpf informed the bank’s board of directors that he is stepping down from his position as CEO, effective immediately. Tim Sloan, Wells Fargo’s President and Chief Operating Officer, has been selected by the board to succeed Stumpf.
Stumpf has been with Wells Fargo since the late ’90s, when the bank merged with Minneapolis-based Norwest Bank. He rose to the CEO gig in 2007, around the same time that there were early rumblings of what would become the current bogus account scandal.
In testimony before Congress, Stumpf admitted that he first began hearing about employees creating fake accounts to meet sales goals in 2013. However, the bad behavior persisted, with more than two million unauthorized accounts being opened by Wells staffers before late September, when the Consumer Financial Protection Bureau and other regulators ordered the bank to pay $185 million.
Amid calls for his resignation and further investigations, the Wells Board clawed back $41 million in Stumpf’s compensation.
by Chris Morran via Consumerist