Congress

Senator Warren Told Him to Resign, and Now He Has

kol-warren-wells-fargo-1200
JM Ashby
Written by JM Ashby

Senator Elizabeth Warren (D-MA) told Wells Fargo CEO John Stumpf that he should resign during a Senate Banking Committee hearing last month, and now he finally has.

Strumpf previously resigned from his position on the Federal Advisory Council that advises the Federal Reserve, but now he has stepped down from his position at Wells Fargo.

The San Francisco bank said Wednesday that Stumpf is retiring effective immediately and also relinquishing his title as chairman. He won't be receiving severance pay and the bank announced earlier that he will forfeit $41 million in stock awards. [...]

"While I have been deeply committed and focused on managing the company through this period, I have decided it is best for the company that I step aside," he said in a prepared statement Wednesday.

The chief of Wells Fargo's retail banking division, Carrie Tolstedt, also resigned several weeks ago. Stumpf forfeited his salary and severance and up to $41 million in stock before resigning, but Tolstedt received a golden parachute of over $100 million.

This isn't the end of the story. Wells Fargo is still being investigated by multiple federal agencies.

  • muselet

    John Stumpf’s abrupt retirement is good news, but the scandal of fake accounts is bigger than one rather slimy man in the corner office. And though other banks have safeguards in place to prevent such monkeyshines, dollars to doughnuts someone at each company’s headquarters is stroking his chin and wondering if some other scheme to squeeze just a little more out of its customes could go undetected.

    Wells Fargo needs to be punished harshly, pour encourager les autres.

    –alopecia

  • Victor the Crab

    I hearts Liz Warren!

  • Aynwrong

    Well done Senator Warren. Keep it up.

  • swift_4

    When a CEO bails without a golden parachute, you know it’s bad. He’s probably taking a vacation as far from extradition as possible.

    • Ken Kohl

      Yeah, you’re right. He’s probably on the first flight out on Vamoose Airways…

      • muselet

        “The only way to flee!” (With apologies to everyone who worked for Western Airlines back in the day.)

        –alopecia

  • David Greenberg

    Lock him up. A black guy steals a loaf of bread at a 7/11, he goes to jail. Rick Scott heads a company found to have defrauded millions upon millions and is elected governor of Florida. Is this a great country or what?