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Oct 12, 2016

Wells Fargo CEO retires following fake accounts controversy

Wells Fargo CEO John Stumpf retires after weeks of public outcry.

by Donna Tam
John Stumpf, Chairman and CEO of the Wells Fargo & Company, testifies before the House Financial Services Committee September 29, 2016 in Washington, DC. The committee heard testimony on the topic of 'An Examination of Wells Fargo's Unauthorized Accounts and the Regulatory Response.' 
John Stumpf, Chairman and CEO of the Wells Fargo & Company, testifies before the House Financial Services Committee September 29, 2016 in Washington, DC. The committee heard testimony on the topic of 'An Examination of Wells Fargo's Unauthorized Accounts and the Regulatory Response.' 
Mark Wilson/Getty Images

Following weeks of scrutiny for the creation of fake accounts, Wells Fargo announced Wednesday that CEO John Stumpf has retired. Wells Fargo President Tim Sloan will take over as chief executive, according to Reuters.

Stumpf and the bank faced mounting criticism for reportedly creating a high-pressure work environment that prompted employees to open millions of accounts without customers’ knowledge. After Sen. Elizabeth Warren (D-Mass.) grilled Stumpf over the company’s practices, some experts questioned what steps the bank would have to take to recover from the public outcry:

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