Wells Fargo CEO resigns amid banking scandal

SAN FRANCISCO (KRON) — Wells Fargo CEO, John Stumpf is to resign immediately in wake of the banking scandal.

Wells Fargo’s sales practices has turned a tremendous amount of backlash onto the bank and CEO.

A Wells Fargo shareholder filed a lawsuit against the company’s officers and directors over 2 million phony accounts and charging unwarranted fees.

William Sarsfield claims Well Fargo’s senior management committed fraud.

Sarsfield is represented by Cotchett, Pitre & McCarthy.

The Consumer Financial Protection Bureau fined the company on September 8 for $100 million alleging unlawful sales practices.

This is the largest claim the Bureau has done.

Sarsfield’s attorney Joseph Cotchett, released a statement.

“This case represents a glaring example of a major bank that takes advantage of consumers all in the name of greed – it represents the culture of Wall Street to drive the stock price up in the name of false profits.”

Wells Fargo CEO John Stumpf allegedly said he was “deeply sorry” that the bank did not act sooner.

“I feel accountable and our leadership team feels accountable and we want all our stakeholders to know that,” Stumpf said.

Sen. Elizabeth Warren flatly told Stumpf he should step down.

“You squeezed your employees to the breaking point so they would cheat customers,” she said. “You should resign. You should give back the money you took while the scam was going on.”

Congressman DeSauliner issued a statement on the resignation of Wells Fargo CEO John Stumpf —

“Two weeks ago I called upon Wells Fargo CEO John Stumpf to resign after finding myself, like so many Americans, disheartened and angry at the rejection of Wells Fargo’s corporate social and ethical responsibilities. Today’s announcement is welcome news, but there is much work to be done for this once great California institution to find its moral compass. It is my hope that Mr. Stumpf’s resignation is the first in a series of actions the company is taking to reform business practices and rebuild consumer’s trust.”

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