Stumpf was San Francisco Fed appointee to advisory group
Move comes after senators urge rejection of his reappointment
Wells Fargo & Co. Chief Executive Officer John Stumpf resigned from the Federal Reserve’s Federal Advisory Council as U.S. lawmakers stepped up pressure after revelations that the bank’s employees had opened two million allegedly bogus client accounts.
Stumpf had served as the San Francisco Fed’s appointee to the panel, which is made up of 12 bank representatives and consults with and advises Fed Board of Governors. Its members customarily serve three one-year terms.
“John made a personal decision to resign as the Twelfth District’s representative to the Federal Advisory Council,” Mark Folk, a Wells Fargo spokesman, said in an e-mailed statement Thursday. “His top priority is leading Wells Fargo.”
Sanders, Warren, others question whether bank “aggressively skirted” labor laws
In a letter sent to Tom Perez, the Secretary of Labor, Sen. Elizabeth Warren, D-Mass, who made nationwide headlines with her heated questioning of Stumpf, along with Sen. Bernie Sanders, I-Vermont; Sen. Bob Menendez, D-New Jersey; Sen. Sherrod Brown, D-Ohio; Sen. Jack Reed, D-Rhode Island; Sen. Jeff Merkley, D-Oregon; Sen. Kirsten Gillibrand, D-New York; and Sen. Mazie Hirono, D-Hawaii, state that they want further investigation into Wells Fargo.
The senators state that the investigation into Wells Fargo conducted by the city of Los Angeles, the Office of the Comptroller of the Currency, and the Consumer Financial Protection Bureau uncovered an environment where employees were subjected to “stringent sales quotas and aggressive incentives, coupled with “staggering neglect by management of the obvious consequences to consumers of those quotas and incentives.”