Wells Fargo CEO to resign in wake of scandal over bank’s sales practices

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SAN FRANCISCO–Wells Fargo CEO John Stumpf will resign, effective immediately, as the nation’s second-largest bank is roiled by a scandal over its sales practices. The bank announced the decision on Wednesday in a statement to Business Wire, which included a statement from Stumpf:

I am grateful for the opportunity to have led Wells Fargo. I am also very optimistic about its future, because of our talented and caring team members and the goodwill the stagecoach continues to enjoy with tens of millions of customers. While I have been deeply committed and focused on managing the Company through this period, I have decided it is best for the Company that I step aside. I know no better individual to lead this company forward than Tim Sloan.

The San Francisco bank said Wednesday that Stumpf will also relinquish his title as chairman. Its chief operating officer, Tim Sloan, will succeed Stumpf as CEO.

Stumpf had led Wells Fargo since 2007.

He faced congressional hearings and consumer wrath after Wells Fargo was found to have opened millions of bank accounts without customers’ permission. Thousands of employees were fired for creating the accounts, and Carrie Tolstedt, the former head of the community banking division at Wells Fargo under which the accounts were made, announced she’d retire at the end of the year with a $124 million payday.

Details on Stumpf’s departure package weren’t released.

The bank was fined $185 million in September over the scandal.

Stephen Sanger, the bank’s lead director, will serve as the board’s non-executive chairman. Independent director Elizabeth Duke will serve as vice chair.