John Stumpf, the chairman and CEO of WELLS FARGO, is retiring, effective immediately. Did Stumpf have any choice? No! Wells Fargo is under scrutiny for an economic and financial scandal – of the century . . .
Stumpf came under siege and searing fire from the U.S. Congress and many stakeholders from within the United States and around the world – for a scandal in which bank employees opened 2 million credit and debit card accounts without customers’ knowledge.
A successor, Tim Sloan, who is the Chief Operating Officer (COO) of Wells Fargo took over the reins immediately Stumpf stepped aside. Sloan is a Wells Fargo veteran of over 25 years. He worked in commercial real-estate lending at the bank and took the COO position in November.
Photo: WELLS FARGO Corporate Headquarters | San Francisco, California.
Stumpf’s departure comes just two weeks after lawmakers, most notably Sen. Elizabeth Warren, called for the CEO’s resignation. Lawmakers also pushed for a split of the chairman and CEO roles.
Wells Fargo’s shares rose 1.6%, to $46.05, following the news.
Photo : John Stumpf, Wells Fargo Chairman & CEO, retires after scandal.
Wells Fargo statement (in part):
“Wells Fargo & Company (WFC) announced today that Chairman and Chief Executive Officer John Stumpf has informed the Company’s Board of Directors that he is retiring from the Company and the Board, effective immediately . . .”
Concise BIO: WELLS FARGO
Wells Fargo & Company is an American international banking and financial services holding company headquartered in San Francisco, California. In July 2015, Wells Fargo became the world’s largest bank by market capitalization before slipping behind JP Morgan Chase in September 2016, in the wake of a scandal involving the alleged creation of over 2 million fake bank accounts by thousands of Wells Fargo employees.
In 2016, Wells Fargo ranked 7th on the Forbes Magazine Global 2000 list of largest public companies in the world and ranked 27th on the Fortune 500 list of largest companies in the United States.
The idea behind Wells Fargo was conceived during the California Gold Rush in early 1848, when financiers and entrepreneurs from all over North America and the world flocked to California drawn by the promise of huge profits. Vermont native Henry Wells and New Yorker William G. Fargo watched the California economy boom with keen interest.
Wells Fargo began with Wells, founder of Wells and Company, and Fargo, a partner in Livingston, Fargo and Company. In 1849 a new rival, John Warren Butterfield, founder of Butterfield, Wasson & Company, entered the express business. Butterfield, Wells and Fargo soon realized that their competition was destructive and wasteful, and in 1850 they decided to join forces to form the American Express Company.
Soon after the new company was formed, Wells, the first president of American Express, and Fargo, its vice-president, proposed expanding their business to California. On March 18, 1852, they organized Wells, Fargo & Company, a joint stock company with an initial capitalization of $300,000, to provide express and banking services to California.
From the beginning, the fledgling company offered diverse and mutually supportive services: general forwarding and commissions; buying and selling of gold dust, bullion, and specie (or coin); and freight service between New York and California.
Wells Fargo is presently in dire straights.