Wells Fargo Bank's CEO faces Sales Scandal

Wells Fargo CEO John Stumpf embattled left his post the second largest bank of the nation was shaken by a scandal on its sales practices. The San Francisco bank said Stump is withdrawn with immediate effect and also give up his chairmanship. He will receive a severance payment and the bank previously, it announced it will provide $ 41 million in stock awards.

Chief operating officer of Wells Fargo, Tim Sloan, Stumpf succeed as CEO and join the Board of Directors of the company. Sloan has been with Wells Fargo's for 29 years. Stephen Sanger, chief manager of the bank, will serve non-executive board chairman. Stumpf final Wells Fargo comes a little over a month after the bank was fined by California and federal regulators for $ 185 million in during its sales practices.

Regulators said that employees attempt to achieve aggressive sales targets have opened bank accounts and

credit cards, they moved money between accounts and even fake email addresses created to register for online banking customers - without the client's permission. Debit cards were issued and activated, and PIN created without the knowledge of customers.

"I wish I could snap fingers and make everything right, but it will take time," said Sloan in an interview Wednesday. "We are You will do well by our customers and we will work to win back confidence. "

Stumpf, a veteran of 34 years of the bank who took over as CEO in 2007, had already gained recognition for navigating through Wells Fargo and the financial crisis keep free of scandal. But he came under withering pressure on the alleged misconduct, suspected to have been on the bench for years. 5,300 the lower-level employees were fired. "Although I am deeply committed and company management focused on through this period, I decided that the best thing for the company that I step aside "He said Wednesday in a prepared statement.

Among the critics of Stumpf, Massachusetts Sen. Elizabeth Warren said at a hearing of the Senate Banking Committee last month that’s he should resign and "Return of the money he took all the conspiracy was going on."

The news of the departure Stumpf, however, did little to calm the anger of some lawmakers on the issue or their company's requests for information on how customers and employees affected whole. Senate Banking Committee Chairman Richard Shelby, R-Ala will be made., and the ranking Democrat on the panel, Sherrod Brown, Ohio, said Wednesday that withdrawing Stumpf does not answer important questions.

We are still waiting for answer as to how Wells Fargo plan provides correct their mistakes against customers and low-wage workers who do not receive the benefit a retirement package when they were dismissed for refusing to cheat, Brown said in a statement. Stumpf earned $ 19.3 million last years. But he and Carrie Tolstedt, the executive who ran the division retail banking, must resign millions.

Tolstedt announced in July that he would retire from the bank this year and should go with as much as $ 125 million salaries, stock option and others compensation. She was stripped of $ 19 million of his stock awards, and his departure was immediate.