News

Scandal-Plagued Wells Fargo CEO Steps Down

Wells Fargo Chairman and CEO John Stumpf announced his retirement, effective immediately, on Wednesday. The Board elected Timothy Sloan as the company’s new Chief Executive Officer, and Stephen Sanger to serve as the Board’s non-executive chairman.

Stumpf, a 34-year veteran of the company, joined Wells Fargo in 1982 before becoming the bank’s CEO in 2007. In a press release released yesterday, Stumpf stated:

“I am grateful for the opportunity to have led Wells Fargo. I am very optimistic about its future…I have decided it’s best for the company that I step aside.”

This news does not come as a major shock as the bank has been under fire and congressional oversight after fraudulent accounts were created, an issue Stumpf failed to correct.

Previously reported by 2ndVote, Senator Richard Shelby, chairman of the Senate Banking Committee, went on CNBC’s “Power Lunch” to discuss the congressional hearing on the Wells Fargo scandal.

In the interview, Senator Shelby said, “When…you have employees, up to 5,00 that they terminated for bringing forth fraudulent accounts, there’s something wrong with the culture and there’s something wrong with that bank.” You can read the rest of 2ndVote’s article here.

We agree with Senator Shelby’s assessment. In fact, here are just a few problems we have with the (liberal) culture at Wells Fargo:

  • Wells Fargo contributes to the National Urban League, which supports a full repeal of “Stand Your Ground” laws and the implementation of Common Core.
  • Wells Fargo is a member and sponsor of Ceres, which is a liberal environmental group that supports cap-and-trade policies.
  • Wells Fargo was a sponsor of the Human Rights Campaign’s annual dinner.
  • Wells Fargo has made direct donations to Planned Parenthood.

In July, Senior Vice President Carrie Tolstedt, the director of the division where the fraud occurred, set to receive a $125 million retirement package when she retires at the end of the year. It is unclear if Tolstedt, bears any responsibility for the scandal, but Wells Fargo fired 5,300 employees as a result (as stated above) and agreed to a $185 million settlement with the defrauded customers.

Upon hearing word of her exit, then Stumpf praised the departing Tolstedt saying she had been ‘a standard-bearer of our culture’ and ‘a champion for our customers’”.

Given Wells Fargo’s record, perhaps the new leadership should reassess where the company’s “culture” has led. For more on why Wells Fargo is rated as one of the most liberal companies in 2ndVote’s database, see the entire scorepage here.