Wells Fargo's Stumpf falls on sword with new boss under fire

The bank said its president and Chief Operating Officer (COO) Tim Sloan would take over as CEO.

But at no time did Warren or regulators hit Wells Fargo where it really matters - it's balance sheet.

The executive pay tracker Equilar estimates Stumpf will have $134 million upon his sudden exit from the embattled bank.

Stump's departure from the United States 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.

Stumpf retired effective immediately Wednesday after taking heat over the opening of 2 million accounts without customer authorization. Debit cards were issued and activated, as well as PINs created, without customers' knowledge.

In an interview with the Post, Sloan said he wished the transition was happening under different circumstances.

Wells' settlement on September 8 with the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and a Los Angeles prosecutor revealed the bank had opened as many as 2 million accounts in retail customers' names without their permission. But he came under withering pressure over the alleged misconduct, believed to have gone on at the bank for years.

"I am grateful for the opportunity to have led Wells Fargo", Stumpf said in a statement.

Spearheading the public campaign against Stumpf was Massachusetts Senator Elizabeth Warren, who not only called for his resignation two weeks ago, but also a criminal investigation into his role in the scandal.

Around 2000 risk management employees will be added by the bank and its new head of retail banking will conduct series of branch tours.

It appears the continuing backlash over a massive consumer-related scandal that rocked Wells Fargo last month was too much for CEO John Stumpf to overcome. Stumpf went as far as pledging to give up $41 million in compensation to atone for the scandal, but his overture did little to quiet critics.

She was stripped of 19 million dollars (£15 million) of her stock awards, and her departure was made immediate.

Federal prosecutors and other US agencies are now probing the bank, sources have said. The bank's independent directors have also launched their own investigation. So analysts like Vivek Juneja at J.P. Morgan, don't think Wells Fargo's troubles are going away anytime soon. Wells Fargo & Co makes up approx 0.25% of Carl Domino Inc's portfolio.Addison Capital Co reduced its stake in WFC by selling 1,130 shares or 2.58% in the most recent quarter.



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