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Saturday 16 December 2017

Wells Fargo chief John Stumpf resigns amid sales scandal

Wells Fargo CEO John Stumpf has resigned (AP)
Wells Fargo CEO John Stumpf has resigned (AP)

The chief executive of the United States' second largest bank Wells Fargo has resigned as the firm is rocked by a scandal over its sales practices.

The San Francisco bank said John Stumpf will also relinquish his title as chairman. The resignation is effective immediately.

Chief operating officer Tim Sloan will succeed Mr Stumpf as chief executive.

Mr Stumpf, who had led Wells Fargo since 2007, faced congressional hearings and consumer wrath after Wells Fargo was found to have opened millions of bank accounts without customers' permission.

Stephen Sanger, the bank's lead director, will serve as the board's non-executive chairman, and independent director Elizabeth Duke will serve as vice chairwoman.

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 dollars (£151 million) to settle allegations that its workers opened millions of accounts without customers' permission to reach aggressive sales targets.

Mr Stumpf 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.

About 5,300 lower-level employees were fired.


Press Association

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