Wells Fargo CEO is out as bank grapples with sales scandal
- Author: Anthony Vega Oct 14, 2016,
Oct 14, 2016, 1:02
"I know Tim, he has vast experience in every part of Wells Fargo and yes, I think he is the right man".
The trailer, which reveals more of Jyn Erso's (Felicity Jones) back story - and features a cameo from Vader himself - has already produced a theory on who installed the Death Star's fatal flaw. "And what happened at Wells Fargo over the course of many years can not be described any other way", Stumpf was told by the the committee's chairman, Jeb Hensarling, R-Texas, at the outset.
Stump's departure from the U.S. commercial and retail banking giant capped mounting public outrage after the bank admitted last month that employees had opened millions of deposit and credit card accounts in customers' names without their knowledge in order to meet sales quotas. Elizabeth Duke, an independent director, will be vice chair.
Wells named Tim Sloan, its president and chief operating officer, to succeed Stumpf five weeks after regulators alleged the bank opened unauthorized accounts affecting millions of customers on Stumpf's watch as chief executive.
The bank has fired over 5,000 employees for the improper activity, which spanned years.
It's not enough for the CEO of Wells Fargo to resign, Sen.
He faced congressional hearings and consumer wrath after Wells Fargo was found to have opened millions of bank accounts without customers' permission.
The San Francisco bank said Wednesday that Stumpf will also relinquish his title as chairman.
While Stumpf doesn't receive a special retirement payout, executive-pay tracker Equilar estimates he'll walk with $134.1 million.
Warren, the long-time Wall Street critic who called for the resignation of Stumpf during a Senate hearing in September, reiterated her call for Stumpf to return all of his compensation and face a criminal investigation.
"I am grateful for the opportunity to have led Wells Fargo", Stumpf said in a statement.
Stumpf's exit leaves Sloan with a steep challenge in rebuilding its reputation and overhauling its hard-charging sales culture without gutting profits.
The bank's shares rose 2 percent in after-hours trading.
Some industry analysts said Stumpf's retirement is a step in the right direction for the third-largest USA bank by assets.
Wall Street will be his first port of call when he presents third-quarter results on Friday.
Stumpf had been a widely admired corporate CEO until about a month ago, guiding Wells Fargo stock higher while other bank stocks languished.