Embattled Wells Fargo CEO Resigns From Federal Panel

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Sept 22 Wells Fargo & Co said Chief Executive John Stumpf resigned from the Federal Reserve Bank of San Francisco's advisory council, saying it was his personal decision.

Stumpf, sporting an injured hand, appeared before the US Senate this week to face questions over the conditions which led to Wells Fargo agreeing to pay $185m for "abusive" sales practices.

Maine Senator Angus King, a political independent, wrote a letter on Thursday to San Francisco Fed Chairman Roy Vallee asking him not to appoint Stumpf for a third one-year term. Some 5,300 employees were fired. Earlier this month, regulators fined Wells Fargo $185 million for the scheme, which also included cases of workers moving customers' money without permission to fund the sham accounts.

Wells Fargo agreed to pay $185m for its "cross selling" failures, which involved opening almost two million unauthorised customer accounts, earlier this month. Debit cards were issued and activated, as well as PINs created, without customers' knowledge. The CEO said on Tuesday he is "deeply sorry" for conduct that "failed to fulfill our responsibilities to our customers, our team members and the American public". He promised to assist affected customers.

The reason for that, the senators claimed, citing media reports, is that "dozens of former and current Wells Fargo employees have come forward to describe the lengths they went to in order to meet the bank's aggressive sales quotas", and, "When quotas weren't met, employees faced threats of termination; mandated hours of unpaid overtime; harassment; and other forms of retaliation". Stumpf's second term would have ended at the end of this year. She is expected to leave with as much as $125 million in salary, stock options and other compensation.

On Sept. 13, the bank said that it would end its sales goals program effective January 1, 2017.