Wells Fargo CEO John Stumpf to Resign Amid Scandal

SEATTLE — Wells Fargo’s embattled CEO John Stumpf has resigned, effective immediately, as the nation’s second-largest bank is roiled by a scandal over its sales practices.

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.

Earlier this week, Seattle ended business with Wells Fargo in letter citing their irresponsible business practices.

Stumpf faced congressional hearings and consumer wrath after Wells Fargo was found to have opened millions of bank accounts without customers’ permission.

The move by Seattle follows similar actions by other governments to suspend business with the company.

Wells Fargo released a statement after Seattle cut ties, saying it was “disappointed” in the city of Seattle’s’ action. It also said the city’s business with the bank was managed separately from the retail operation involved in 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.

Stumpf had led Wells Fargo since 2007.

Associated Press contributed to this report. Copyright 2016


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