Wells CEO Resigns From Fed Advisory Council As Pressure Mounts

With Rep. Hensarling threatening that the Wells Fargo debacle is "only in its 3rd inning," it appears today's Labor Department probe was enough to push CEO Stumpf over the edge as pressure mounts for his head. Effective today, John Stumpf has resigned his position as the Federal Reserve Bank of San Francisco’s appointee to the Fed’s Federal Advisory Council.

Following the earlier Labor Department probe, Rep. Hensarling added to the pressure for Stumpf's (or regulators') heads...

(Video length: 00:04:57)

"We're probably only in the third inning. There's lots more to go here and we're only starting investigation now,"

And now, as Bloomberg notes, Wells Fargo chief executive officer John Stumpf has resigned from his position as the Federal Reserve Bank of San Francisco’s appointee to the Fed’s Federal Advisory Council.

  • *SAN FRANCISCO FED: WELLS FARGO CEO STUMPF QUITS FED PANEL
  • *JOHN STUMPF MADE `PERSONAL DECISION' TO RESIGN FROM FED PANEL
  • *STUMPF'S `TOP PRIORITY IS LEADING WELLS FARGO,' SPOKESMAN SAYS

The Fed’s Federal Advisory Council, composed of 12 bank representatives, consults with and advises Fed Board of Governors; members customarily serve three one-year terms:

  • Richard E. Holbrook, First District
  • James P. Gorman, Second District
  • Scott V. Fainor, Third District
  • Paul G. Greig, Fourth District
  • Kelly S. King, Fifth District
  • O.B. Grayson Hall, Jr., Sixth District
  • Frederick H. Waddell, Seventh District
  • Ronald J. Kruszewski, Eight District
  • Patrick J. Donovan, Ninth District
  • Jonathan M. Kemper, Tenth District
  • Ralph W. Babb, Jr., Eleventh District
  • John G. Stumpf, Twelfth District
  • Herb Taylor, Secretary

The resignation follows the earlier reported news that seven senators called for a Department of Labor investigation into Wells Fargo's firing of more than 5,000 employees. The senators, who were later joined by Elizabeth Warren, called into question whether the bank violated the Fair Labor Standards Act. The other senators who signed the letter to the Department of Labor are Sherrod Brown, Jack Reed, Robert Menendez, Bernie Sanders, Jeff Merkley, Kirsten Gillibrand and Mazie Hirono.

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