Wells Fargo & Co. Chairman and CEO John Stumpf has informed the company’s board of directors that he will be stepping down from both positions effective immediately, the San Francisco-based bank said Wednesday. The bank’s board elected President and Chief Operating Officer Tim Sloan to replace Stumpf, the Charlotte…
Illinois State Treasurer Michael Frerichs said Monday that his office will suspend investment activity with Wells Fargo in light of the bank’s ongoing fraud scandal and investigation, USA Today reports.
Just when it looked as if things could not get worse for Wells Fargo, the bank took another beating Thursday when it agreed to pay $24 million for improperly repossessing cars it financed for members of the U.S. military, the Los Angeles Times reports.
“Mr. Stumpf, the Wells Fargo Vision and Values statement [pdf], which you frequently cite, says, quote, ‘We believe in values lived, not phrases memorized. If you want to find out how strong a company’s ethics are, don’t listen to what its people say; watch what they do.’ So, let’s do that.”
Wells Fargo is embroiled in a multimillion-dollar banking-fraud scandal stemming from its aggressive cross-selling tactics, and CEO John Stumpf blames low-level bank employees for the trouble.