SAN FRANCISCO — 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. SAN FRANCISCO (dpa-AFX) - Wells Fargo & Co. (WFC) Wednesday said Chairman and Chief Executive Officer John Stumpf is retiring from the company and the Board, as the bank struggles to re-establish itself after the fake-account scandal. But amid the scandal, he agreed to forfeit much of his 2016 salary, including his bonus and $41 million in stock awards, as the bank launched an internal investigation into the phoney accounts. Wells Fargo & Co’s veteran chairman and chief executive officer, John Stumpf, is leaving the bank in the wake of a sales scandal and will be replaced as CEO by President and Chief Operating Officer Tim Sloan. At the time it was announced, Stephen Sanger, the board's lead independent director, said Stumpf and another top bank executive could face further penalties, depending on the results of the investigation. “We are going to make it right by our customers and we are going to work to win that trust back.”

Stumpf, a 34-year veteran of the bank who took over as CEO in 2007, had previously gained acclaim for navigating Wells Fargo through the financial crisis and keeping it free of scandal. The bank fired around 5,300 employees for opening accounts without authorization.
John Stumpf resigns as CEO and chairman of Wells Fargo amid a scandal over its sales practices.