John Stumpf

John Stumpf
Born	John Gerard Stumpf 15 9, 1953
Birthplace	Pierz, Minnesota, U.S.
Nationality	American
Occupation	Banking executive
Title	Chairman and CEO of Wells Fargo (2010–2016)
Known for	Former Chairman and CEO of Wells Fargo; involvement in Wells Fargo account fraud scandal
Education	University of Minnesota (MBA)

John Gerard Stumpf (born September 15, 1953) is an American former banking executive who served as the chairman and chief executive officer of Wells Fargo, one of the largest financial institutions in the United States and a member of the Big Four banks. Rising from modest origins in rural Minnesota, Stumpf built a career spanning more than three decades in the banking industry, ascending through the ranks of what would become one of the world's most valuable banks. He was named president of Wells Fargo in August 2005, elected to the board of directors in June 2006, became CEO in June 2007, and assumed the additional title of chairman in January 2010. His tenure at the helm of Wells Fargo ended abruptly on October 12, 2016, when he resigned amid a sweeping scandal involving the creation of millions of unauthorized customer accounts by bank employees. The scandal prompted congressional hearings, regulatory fines, and intense public scrutiny, ultimately leading to Stumpf's departure and, years later, a lifetime ban from the banking industry and a $17.5 million personal fine imposed by federal regulators.

Early Life

John Gerard Stumpf was born on September 15, 1953, in Pierz, Minnesota, a small town in central Minnesota with a population of approximately 1,300 people. He grew up in a large family on a dairy farm, one of eleven children. His upbringing in rural Minnesota shaped his work ethic and sensibility; he was accustomed to early mornings and physical labor from a young age. Pierz, located in Morrison County, was a predominantly agricultural community, and the Stumpf family's livelihood depended on farming.

Stumpf has spoken publicly about his humble beginnings, noting that his family did not have significant financial resources. The experience of growing up in a farming household with many siblings instilled in him a sense of discipline and frugality that he would later reference in his leadership philosophy at Wells Fargo. His background in small-town Minnesota was frequently cited in media profiles as emblematic of a distinctly Midwestern approach to business—understated and focused on steady growth rather than flashy risk-taking.

Education

Stumpf pursued his undergraduate education at St. Cloud State University in St. Cloud, Minnesota, where he earned a Bachelor of Science degree. He later attended the University of Minnesota, one of the state's flagship public universities, where he obtained a Master of Business Administration (MBA). His educational background combined a foundation in general business principles with advanced training in management and finance, preparing him for a career in the banking sector. Stumpf began his career in banking shortly after completing his graduate studies, entering the industry at the ground level before rising through progressively senior roles.

Career

Early Banking Career

Stumpf began his banking career in the early 1980s, working at smaller financial institutions before joining what would become part of the Wells Fargo network. He entered the banking industry as a loan officer and worked his way through various positions in retail and commercial banking over the course of more than two decades. His early career was spent primarily in the upper Midwest, where he developed expertise in community banking, lending, and branch management.

Over the years, Stumpf gained recognition within the banking industry for his focus on retail banking—the consumer-facing side of the business that involves individual deposits, mortgages, and personal loans. This focus on the retail segment would become a defining characteristic of his leadership and of Wells Fargo's strategic identity during his tenure.

Rise at Wells Fargo

Stumpf's ascent within Wells Fargo accelerated in the early 2000s. He was named head of the company's Community Banking division, which encompassed the bank's vast retail branch network—one of the largest in the United States. His success in managing this division, which generated a substantial portion of Wells Fargo's revenue, positioned him as a leading candidate for the bank's top leadership roles.

In August 2005, Stumpf was named president of Wells Fargo & Company. He was elected to the company's board of directors in June 2006 and was named chief executive officer in June 2007, succeeding Dick Kovacevich, who had led the bank through a period of significant growth and consolidation. In January 2010, Stumpf added the title of chairman of the board, consolidating his authority over the institution.

Tenure as CEO

Stumpf's tenure as CEO of Wells Fargo coincided with one of the most turbulent periods in American financial history. The financial crisis of 2007–2008 and the subsequent Great Recession tested the resilience of every major financial institution in the United States. Wells Fargo, under Stumpf's leadership, was perceived by many industry observers as having navigated the crisis more successfully than several of its peers, in part because the bank had less exposure to some of the most toxic mortgage-backed securities that devastated other institutions.

A defining moment of Stumpf's early CEO tenure was Wells Fargo's acquisition of Wachovia in 2008, a deal executed amid the financial crisis. The acquisition, valued at approximately $15 billion, dramatically expanded Wells Fargo's geographic footprint, particularly on the East Coast, and made it one of the largest banks in the United States by assets, deposits, and market capitalization.

Under Stumpf's leadership, Wells Fargo pursued a strategy centered on cross-selling—encouraging existing customers to open additional accounts and purchase more financial products. The bank frequently touted a metric known as "products per household," which measured the average number of Wells Fargo products held by each customer household. This metric became a central part of Wells Fargo's identity and investor relations narrative, with the bank setting ambitious internal targets for cross-selling.

Stumpf's compensation during this period reflected the bank's financial performance. For the 2015 fiscal year, Wells Fargo left Stumpf's total compensation unchanged at $19.3 million.

Fake Accounts Scandal

The event that came to define Stumpf's legacy was the revelation that Wells Fargo employees had created millions of unauthorized bank and credit card accounts in the names of existing customers without their knowledge or consent. The practice, which was driven by intense internal sales pressure and the cross-selling targets that had been a hallmark of Stumpf's strategy, affected an estimated 3.5 million accounts over a period of several years.

On September 8, 2016, the Consumer Financial Protection Bureau (CFPB), along with the Office of the Comptroller of the Currency (OCC) and the Los Angeles City Attorney's office, announced that Wells Fargo would pay $185 million in fines and penalties for the widespread illegal practice of secretly opening unauthorized accounts. The CFPB's $100 million penalty was the largest fine the agency had imposed to that point. The bank had already fired approximately 5,300 employees in connection with the unauthorized account activity.

The scandal triggered immediate and intense political and public backlash. On September 20, 2016, Stumpf appeared before the United States Senate Committee on Banking, Housing, and Urban Affairs, where he faced sharp questioning from senators of both parties. Senator Elizabeth Warren of Massachusetts delivered a particularly notable rebuke, telling Stumpf that he should resign and face criminal investigation.

During his Senate testimony and subsequent appearances, Stumpf defended the overall culture of Wells Fargo while attributing the unauthorized account openings to individual employees who had violated company policy. He stated that the misconduct was not the result of the bank's business model but rather the actions of employees who did not honor the bank's values. This defense drew significant criticism from lawmakers, regulators, consumer advocates, and media commentators, who argued that the bank's aggressive sales targets and incentive structures had created an environment that encouraged or even necessitated the fraudulent behavior.

On September 29, 2016, Stumpf testified before the United States House Committee on Financial Services, where he again faced intense questioning about the scandal, the bank's sales practices, and his personal responsibility for the misconduct. Members of the committee pressed Stumpf on questions about when senior management first learned of the unauthorized accounts, why more aggressive action had not been taken sooner, and whether the bank's compensation and incentive structures bore responsibility for the fraud.

In the weeks following the congressional hearings, the Wells Fargo board of directors undertook a review of executive compensation. The board announced that Stumpf would forfeit $41 million in unvested stock awards and would not receive a salary or bonus during the investigation. The board also pursued clawback provisions against other senior executives, including Carrie Tolstedt, who had led the Community Banking division where the unauthorized accounts were created.

Resignation

On October 12, 2016, Wells Fargo announced that Stumpf had resigned as chairman and CEO, effective immediately. The company's press release stated that Stumpf had "informed the Company's Board of Directors" of his decision to retire. Timothy J. Sloan, who had been serving as president and chief operating officer, was elected as the new CEO and a member of the board of directors. Stephen Sanger, who had been lead independent director, was appointed chairman, and Elizabeth Duke was named vice chair.

Stumpf's resignation came after weeks of mounting pressure from lawmakers, regulators, institutional investors, and the public. Several members of Congress had called for his resignation, and some institutional shareholders had expressed concerns about the bank's governance and leadership.

Reports at the time indicated that Stumpf departed Wells Fargo with a compensation package that, despite the clawbacks and forfeitures, remained substantial. According to CNN Money, Stumpf's total compensation losses through clawbacks and forfeitures amounted to approximately $41 million, but he retained stock and retirement benefits valued at tens of millions of dollars.

Regulatory Actions and Lifetime Ban

The consequences of the fake accounts scandal continued to affect Stumpf long after his departure from Wells Fargo. In February 2018, the Federal Reserve took the unprecedented step of imposing an asset cap on Wells Fargo, prohibiting the bank from growing its balance sheet beyond its year-end 2017 level until it had sufficiently improved its governance and risk management. The Federal Reserve's enforcement action referenced failures in oversight during the period of Stumpf's leadership.

On January 23, 2020, the OCC announced that Stumpf had agreed to a consent order that included a lifetime ban from the banking industry and a personal fine of $17.5 million. The OCC's action cited Stumpf's failure to adequately oversee the bank's sales practices and his role in the corporate culture that led to the fraud. Stumpf was one of several former Wells Fargo executives who faced individual regulatory actions in connection with the scandal. The $17.5 million fine was among the largest ever imposed on an individual bank executive by the OCC.

The Washington Post reported that Stumpf was "banned for life" from the banking industry as part of the settlement.

Despite the substantial penalties, the Los Angeles Times reported that Stumpf's financial future remained secure. He had departed Wells Fargo with more than $130 million in stock and retirement benefits, and even after accounting for the approximately $70 million in losses through forfeitures, clawbacks, and the OCC fine, he retained significant personal wealth.

Personal Life

John Stumpf was born and raised in Pierz, Minnesota, where he grew up on a dairy farm as one of eleven children. He has maintained a relatively private personal life throughout his career and after his departure from Wells Fargo. Details about his family life beyond his upbringing have not been extensively documented in public sources.

Prior to the scandal, Stumpf served on several prominent boards and advisory bodies, including The Clearing House, the Financial Services Roundtable, and the board of directors of Chevron Corporation. He stepped down from these external board positions following his resignation from Wells Fargo.

Recognition

Before the fake accounts scandal, Stumpf received recognition within the banking and business communities for his leadership of Wells Fargo during and after the financial crisis. The bank's relative stability during the 2008 crisis and its successful acquisition of Wachovia were frequently cited as achievements of his tenure.

However, the revelations about the unauthorized accounts scandal fundamentally altered the public perception of Stumpf's leadership. His congressional testimony in September 2016, in which he defended the bank's culture while attributing blame to lower-level employees, became one of the most scrutinized corporate appearances of the decade.

The OCC's 2020 enforcement action, which included the lifetime industry ban and $17.5 million fine, represented one of the most severe individual penalties imposed on a bank CEO in the post-financial-crisis era. The action served as a signal from regulators that senior executives could be held personally accountable for systemic failures within their institutions, even in the absence of criminal charges.

Legacy

The Wells Fargo fake accounts scandal, and Stumpf's role in it, became one of the defining corporate governance episodes of the 2010s. The scandal raised fundamental questions about incentive structures in the banking industry, the responsibilities of senior executives for the conduct of employees, and the adequacy of regulatory oversight of large financial institutions.

The cross-selling strategy that Stumpf had championed—and the "products per household" metric that served as its benchmark—became a cautionary example in business schools, boardrooms, and regulatory discussions about the dangers of misaligned incentive structures. Critics argued that the aggressive sales targets imposed on frontline employees created impossible expectations that could only be met through fraudulent means, and that senior leadership either knew or should have known about the resulting misconduct.

Wells Fargo's reputation suffered lasting damage as a result of the scandal. The Federal Reserve's asset cap, imposed in February 2018, remained in place for years after Stumpf's departure, constraining the bank's growth and serving as a visible reminder of the governance failures during his tenure. The bank paid billions of dollars in additional fines, settlements, and remediation costs in the years that followed.

Stumpf's case also became a reference point in broader debates about executive accountability in the American financial system. While Stumpf faced significant financial penalties and a permanent industry ban, he was not criminally charged, and he retained substantial personal wealth despite the forfeitures and fines. This outcome prompted ongoing discussion among lawmakers, regulators, and the public about whether the consequences imposed on senior executives in cases of widespread corporate misconduct are proportionate and sufficient to serve as an effective deterrent.

Timothy J. Sloan, who succeeded Stumpf as CEO, himself resigned in March 2019 amid continued scrutiny of the bank's practices, and was eventually succeeded by Charles Scharf, who was brought in from outside the company to lead Wells Fargo's recovery and reform efforts.