Wells Fargo [corporate website] on Wednesday announced [press release] that Chairman and Chief Executive Officer (CEO), John Stumpf, will immediately resign from both positions. Hours after the news, Wells Fargo share prices increased [LA Times report] by 1.65 percent. Stumpf joined the company in 1982, became CEO in 2007, and Chairman in 2010. Tim Sloan, who will replace Stumpf as CEO, insisted on Wednesday that Stumpf was not forced to retire or asked to leave. He will reportedly not receive any severance from the company. Late last month Wells Fargo also announced Stumpf would forfeit [NPR report] $41 million in outstanding stock awards, would not obtain a salary during investigation, and forgo his bonus for 2016. Many critics believe Stumpf should face harsher consequences, including Senator Elizabeth Warren [official website], who wrote on Facebook [statement] that he should face a Department of Justice (DOJ) investigation. Other Senate Democrats, including Bernie Sanders and Mazie K. Hirono [official websites] had also previously called for [press release] a criminal investigation into Wells Fargo executives last week.

Wells Fargo is currently facing many legal challenges, after the Consumer Financial Protection Bureau (CFPB), a federal agency entrusted with consumer protection in the financial sector, announced [JURIST report] a $100 million fine against the bank for widespread illegal sales practices. Two former employees of Wells Fargo filed a class action lawsuit [JURIST report] later that month on behalf of employees whom they claim were penalized over the last 10 years for following the rules and not meeting sales quotas. A class action lawsuit was filed [JURIST report] in September in a US District Court in Utah against Wells Fargo by customers alleging invasion of privacy, fraud, negligence and breach of contract. Lastly, shareholders [JURIST report] have also filed suit against the banking conglomerate.