Stumpf is leaving as the bank is rocked by controversy following revelations that it opened 2 million customer accounts without customers’ knowledge or authorization. The bank has faced numerous state and federal investigations – including from the Department of Justice, according to the Journal.
Many observers, including Sen. Elizabeth Warren (D-Mass.) had called for Stumpf’s resignation in the wake of the scandal. The Wells Fargo board also recently decided that Stumpf should forfeit $41 million in compensation – one of the largest clawbacks ever for the head of a US bank, the Journal reported.
Shares of Wells Fargo rose 1.7% today in after-hours trading. Shares in the bank are down 13% over the past year.
Wells Fargo Chairman and CEO John Stumpf is out as of now. Stumpf is stepping down effective immediately, according to a Wall Street Journal report. He will be replaced by the bank’s president and COO, Timothy Sloan.