Wells Fargo boss stands down and is replaced by chief operating officer

Oliver Gill
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The embattled boss of Wells Fargo, John Stumpf has quit his post, effective immediately.

The reins at the US' third largest bank have been handed onto Tim Sloan, the company’s president and chief operating officer. Sloan will hold onto his role as president.

Stumpf had been under increasing pressure to resign in the wake of an investigation into claims that its employees opened as many as two million unauthorised new accounts using current customer names.

Read more: Fitch piles on to Wells Fargo's woes with downgrade to negative

Nevertheless, Sloan was glowing in his praise for the outgoing chief executive:

John Stumpf has dedicated his professional life to banking, successfully leading Wells Fargo through the financial crisis and the largest merger in banking history, and helping to create one of the strongest and most well-known financial services companies in the world.

However, he believes new leadership at this time is appropriate to guide Wells Fargo through its current challenges and take the Company forward.

Read more: Wells Fargo boss subject to landmark bonus clawback

Wells Fargo has already agreed to pay $185m to settle regulatory charges and has sacked over 5,000 employees.

In September Stumpf was the first US banking chief executive to see a clawback of his $41m bonus in the wake of the investigation.