Make us your home page
Instagram

Wells Fargo CEO John Stumpf resigns effective immediately

 John Stumpf is sworn  Sept. 29  prior to testifying before the House Financial Services Committee investigating Wells Fargo's opening of unauthorized customer accounts. He has stepped down as Wells Fargo's CEO.  [Associated Press]

John Stumpf is sworn Sept. 29 prior to testifying before the House Financial Services Committee investigating Wells Fargo's opening of unauthorized customer accounts. He has stepped down as Wells Fargo's CEO. [Associated Press]

SAN FRANCISCO — 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. Stephen Sanger, the bank's lead director, will serve as the board's non-executive chairman.

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 well-known in the banking industry for its ability to sell customers multiple products, such as a new account, a mortgage, a retirement account, or even online banking. The company has agreed to pay $185 million to settle allegations that its workers opened millions of accounts without customers' permission to reach aggressive sales targets.

Stumpf, a 34-year veteran of the bank, had previously gained acclaim for navigating Wells Fargo through the financial crisis and keeping it free of scandal. But he came under withering pressure over the alleged misconduct, believed to have gone on at the bank for years. Some 5,300 lower-level employees were fired.

Wells Fargo CEO John Stumpf resigns effective immediately 10/12/16 [Last modified: Wednesday, October 12, 2016 6:27pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. 'Road to Nowhere' is back: Next phase of Suncoast Parkway coming

    Roads

    Despite intense public opposition and dubious traffic projections, the Florida Department of Transportation has announced that construction of the toll road known as "Suncoast 2" is expected to start in early 2018.

    The Suncoast Parkway ends at U.S. 98 just south of Citrus County. For years residents have opposed extending the toll road, a project dubbed the "Suncoast 2" into Citrus County. But state officials recently announced that the Suncoast 2 should start construction in early 2018. [Stephen J. Coddington  |  TIMES]
  2. A sports rout on Wall Street

    Retail

    NEW YORK — Sporting goods retailers can't shake their losing streak.

  3. Grocery chain Aldi hosting hiring event in Brandon Aug. 24

    Retail

    BRANDON — German grocery chain Aldi is holding a hiring event for its Brandon store Aug. 24. It is looking to fill store associate, shift manager and manager trainee positions.

  4. Lightning owner Jeff Vinik backs film company pursuing global blockbusters

    Corporate

    TAMPA — Jeff Vinik's latest investment might be coming to a theater near you.

    Jeff Vinik, Tampa Bay Lightning owner, invested in a new movie company looking to appeal to a global audience. | [Times file photo]
  5. Trigaux: Look to new Inc. 5000 rankings for Tampa Bay's future heavyweights

    Business

    There's a whole lotta fast-growing private companies here in Tampa Bay. Odds are good you have not heard of most of them.

    Yet.

    Kyle Taylor, CEO and founder of The Penny Hoarder, fills a glass for his employees this past Wednesday as the young St. Petersburg personal advice business celebrates its landing at No. 25 on the 2017 Inc. 5000 list of the fastest growing private companies in the country. Taylor, still in his 20s, wins kudos from executive editor Alexis Grant for keeping the firm's culture innovative. The business ranked No. 32 last year. [DIRK SHADD   |   Times]