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Wells Fargo CEO John Stumpf to resign in wake of scandal over bank’s sales practices

FILE - In this Thursday, Sept. 29, 2016, file photo, Wells Fargo CEO John Stumpf testifies on Capitol Hill in Washington, before the House Financial Services Committee investigating Wells Fargo's opening of unauthorized customer accounts. Embattled CEO Stumpf is out effective immediately, with President and Chief Operating Officer Tim Sloan taking over as the head of the one of the nation’s largest banks, the company announced Wednesday, Oct. 12, 2016. (Cliff Owen / AP)
Associated Press

Wells Fargo’s embattled CEO John Stumpf has resigned, effective immediately, as the nation’s second-largest bank is roiled by a scandal over its sales practices.

The San Francisco bank said Wednesday that Stumpf will also relinquish his title as chairman. Its chief operating officer, Tim Sloan, will succeed Stumpf as CEO.

Stumpf had led Wells Fargo since 2007.

He faced congressional hearings and consumer wrath after Wells Fargo was found to have opened millions of bank accounts without customers’ permission.

Stephen Sanger, the bank’s lead director, will serve as the board’s non-executive chairman. Independent director Elizabeth Duke will serve as vice chair.