The Resignation of Wells Fargo's CEO

After a month of national backlash for a phony accounts scandal, John Stumpf has resigned effective immediately.

John Stumpf
Cliff Owen / AP

NEWS BRIEF John Stumpf, the embattled CEO of Wells Fargo, is stepping down from his position immediately following a phony bank and credit-card account scandal that’s rocked one of the largest banks in the U.S.

Several members of Congress have demanded Stumpf’s resignation for the last month. While Stumpf forfeited $41 million in stock awards, he remained in charge of a company that for years set unrealistically high sales expectations, which regulators say created a culture that led to this scandal. Now, he’s forfeiting his position, as The Wall Street Journal reports:

Mr. Stumpf will be replaced by President and Chief Operating Officer Timothy J. Sloan,who was widely expected to succeed Mr. Stumpf when he retired in the future.

In a statement, Sloan said that his “immediate and highest priority is to restore trust in Wells Fargo.”

It’s unclear if Stumpf will receive any sort of severance package. When Carrie Tolstedt, the head of the Wells Fargo division where the phony account scheme took place, left the company earlier this month, she did not collect the $124 million she would normally have received in severance.