On Tuesday evening, Wells Fargo announced that the bank’s CEO, John Stumpf, would forfeit $41 million in uninvested equity and forego his salary in the wake of a scandal that has hurt the bank’s reputation. The news comes on the heels of a new Labor Department investigation into the bank’s practices, as well as the filing of a proposed $7.2 billion class-action lawsuit by several ex-employees who claim they were forced to “choose between keeping their jobs and opening unauthorized accounts,” according to CNN Money.
In early September, federal consumer protection regulators announced that thousands of Wells Fargo employees had temporarily opened at least 2 million fake accounts to goose their sales quotas by using real customers’ names without their consent, going so far as to move money from authorized accounts into unauthorized accounts to make them look real. In some cases, the movement of money triggered overdraft and minimum balance fees for the customers.
About 500,000 of the fake accounts were credit card accounts—the rest were debit accounts. In a hearing held by the Senate Banking Committee last week, Stumpf admitted that he was unsure if any of the fake accounts harmed customers’ credit ratings.