Update October 12: Wells Fargo has announced that CEO and Chairman John Stumpf will step down from both positions and the bank's President and Chief Operating Officer Timothy J. Sloan will replace him, effective immediately. Stumpf promised earlier this year that he would forfeit $41 million in unvested equity, which the Wall Street Journal says is one of the largest bonus clawbacks ever for the chief of a US bank. CNBC reports that Stumpf will not receive a severance from the bank.
Original Story: Wells Fargo employees were creating fake accounts in customers’ names without their authorization as early as 2005, according to a letter obtained by Vice News. The letter comes from a former branch manager at a Washington state-based Wells Fargo Branch and was written in January 2006. Wells Fargo recently paid fines totaling $185 million for the creation of 2 million unauthorized accounts since 2011. The bank has said that it will investigate additional unauthorized accounts opened in 2010 and 2009, but it has not acknowledged that such a practice occurred as early as 2005.