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John Stumpf
Former CEO of Wells Fargo
Oversaw the creation of millions of fake customer accounts at Wells Fargo through aggressive sales quotas that pressured employees into systematic fraud
Overview
John Gerard Stumpf served as CEO and Chairman of Wells Fargo from 2007 to 2016. Under his leadership, Wells Fargo employees opened approximately 3.5 million unauthorized bank and credit card accounts using real customers' personal information to meet aggressive sales quotas. The cross-selling pressure was driven from the top, with Stumpf's mantra of "eight is great" (meaning every customer should have eight Wells Fargo products). Employees who failed to meet quotas were fired, while those who reported fraud were retaliated against. The scandal was first reported by the Los Angeles Times in 2013, but Stumpf denied systemic problems for three years. When the CFPB, OCC, and LA City Attorney announced a $185 million combined fine in September 2016, Stumpf initially blamed low-level employees. He resigned in October 2016 under intense congressional pressure and was barred from the banking industry for life by the OCC in January 2020. He was personally fined $17.5 million and was required to repay $41 million in compensation. Wells Fargo's total penalties exceeded $4.5 billion.
Key Affiliations
Controversies & Concerns
Oversaw creation of 3.5 million fake customer accounts through quota pressure
Wells Fargo fined $4.5 billion+ in total penalties
Blamed low-level employees for systematic fraud driven by executive sales targets
Barred from banking industry for life by OCC
Personally fined $17.5M and forfeited $41M in compensation
Employees who reported fraud were fired; over 5,300 employees terminated for participating
Denied systemic problems for 3 years despite Los Angeles Times reporting
Related Investigations (1)
Criminal Charges & Violations
3 documented violations
12 U.S.C. 1818(e)OCC Prohibition Order - barred from banking industry for life(federal)
12 U.S.C. 1818(i)OCC civil money penalty - $17.5 million personal fine(federal)
12 U.S.C. 5531-5536CFPB consent order - unfair and deceptive practices ($100M penalty)(federal)
Known Associates & Connections
Carrie Tolstedt
Head of Community Banking division; oversaw fake accounts operations
Tim Sloan
Successor as CEO; also resigned over scandal fallout
Sources & Documentation
1 documented sources from official records, investigations, and reports
Personal Information
- Born
- September 6, 1953
- Birthplace
- Pierz, Minnesota
Education
- •St. Cloud State University (B.S.)
- •University of Minnesota (M.B.A.)
Key Timeline
2007
Becomes CEO of Wells Fargo
2013-12
LA Times first reports on fake accounts; management denies scope
2016-09-08
CFPB, OCC, LA City Attorney announce $185M in fines
2016-09-20
Testifies before Senate; initially blames low-level employees
2016-10-12
Resigns as CEO under congressional pressure
2020-01-23
Barred from banking for life; fined $17.5M by OCC