Wells Fargo & Co Chief Executive John Stumpf, under fire over problematic sales tactics, resigned from the Federal Reserve Bank of San Francisco’s advisory council on Thursday.
“John made a personal decision to resign as the Twelfth District’s representative to the Federal Advisory Council. His top priority is leading Wells Fargo,” Wells Fargo spokesman Mark Folk said in an email.
A spokesman for the San Francisco Fed declined to comment beyond a press release from the regulator announcing Stumpf’s resignation.
The Federal Advisory Council has 12 banking industry representatives and ordinarily meets four times a year. Representatives typically serve three one-year terms. Stumpf’s second term would have ended at the end of this year.
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. Four Senate Democrats also signed the letter.
Wells Fargo has fired some 5,300 employees for opening as many as 2 million accounts in customers’ names without their authorization. On Sept. 8, a federal regulator and Los Angeles prosecutor announced a $190 million settlement with Wells.
(Additional reporting by Diptendu Lahiri in Bengaluru and Patrick Rucker in Washington, D.C.- Editing by Sriraj Kalluvila and Chris Reese)
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