Wells Fargo chairman and chief executive officer John Stumpf, who has faced a firestorm of controversy ever since that San Francisco institution was subject to an enforcement action by federal regulators over “widespread unlawful sales practices,” is retiring from the company and its board, The Wall Street Journal reported today.

John Stumpf

Stumpf's resignation is effectively immediately. He will be succeeded by president and COO Timothy J. Sloan, the Journal reported. A statement issued at 5:04 p.m. today by Wells Fargo confirmed the news, and states that Sloan will also retain the title of president, with lead director Stephen Sanger now serving as the board’s non-executive chairman and independent director Elizabeth Duke serving as vice chair.

Wells Fargo has been embattled in crisis since it was revealed in early September that thousands of low-ranking Wells Fargo employees nationwide allegedly created more than two million fake deposit and credit card accounts in a bid to boost sales figures, allegedly billing customers for financial services they never authorized.

Fines totaling more than $185 million were levied at the bank in September by the Consumer Financial Protection Bureau, the City Attorney of Los Angeles and the Office of the Comptroller of the Currency, as well as a demand to pay full remediation to customers who incurred fees for financial products and services sold to them without their knowledge.

Wells Fargo conducted an internal review of five years’ worth of consumer and small business retail banking deposit accounts and fired 5,300 employees as a result of its findings.

A September 8 statement issued by the CFPB cited Wells Fargo’s high-pressure sales culture, where branch employees were encouraged to cross-sell an array of financial products to customers, coupled with the bank’s failure to monitor how those practices were implemented, in establishing an influential climate for the illicit activity.

Stumpf and other Wells Fargo executives in September testified before a Senate Banking Committee, where members of Congress blasted the bank for its cross-selling tactics, with Senate firebrand Elizabeth Warren (D-MA) stating that Stumpf “should resign,” and “should be criminally investigated by both the Department of Justice and the Securities and Exchange Commission."

Stumpf on September 27 said he would forfeit $40 million worth of stock and would also forego his annual bonus as well as part of his salary for the year. Stumpf also claimed that Wells Fargo would cease its sales incentive program.

Stumpf, a former regional president for Norwest Banks, joined Wells Fargo in 1982. He was named CEO in 2007 and became chairman in 2010.

“I am grateful for the opportunity to have led Wells Fargo,” Stumpf said in a prepared statement issued today. “It’s a great privilege to have the opportunity to lead one of America’s most storied companies at a critical juncture in its history. My immediate and highest priority is to restore trust in Wells Fargo. It’s a tremendous responsibility, one which I look forward to taking on, because of the incredible caliber of our people, and the opportunity we have to impact the lives of our millions of customers around the world. We will work tirelessly to build a stronger and better Wells Fargo for generations to come.”