Wells Fargo CEO retires amid fire

Rebecca Rakowitz

Wells Fargo CEO and Chairman John Stumpf is retiring, the bank announced on Wednesday, effective immediately.

Stumpf’s retirement is in light of Wells Fargo’s fake account scandal whereby employees working under intense sales goals created over two million unauthorized accounts using existing customer information. Pressure was on Stumpf to take responsibility for the fraud amplified after 5,300 employees fired.

In a Senate hearing where Stumpf was attacked on both sides of the aisle, Sen. Elizabeth Warren advocated for Stumpf’s resignation.

“You should resign…You should be criminally investigated,” Warren said of the “gutless” leader, according to a CNN article.

Wells Fargo said that Stumpf will not receive a severance package, but The Wall Street Journal reports that he will still retire with tens of millions from his 35-year career at the bank.

The bank’s President and Chief Operating Officer Timothy Sloan will replace Stumpf as CEO. As far as Stumpf’s chairman duties, Lead Director Stephen Sanger will step in as the board’s non-executive chairman.