Wells Fargo & Co said Chief Executive John Stumpf has resigned from the Federal Reserve Bank of San Francisco's advisory council.
The bank said it was his personal decision.
Not a chance.
San Francisco Bank President John Williams is very astute at understanding which ways the political winds are blowing. The optics of keeping Stumpf on the advisory council were really bad following focus on the news that Wells Fargo employees opened as many as 2 million accounts in customers' names without their authorization.
Stumpf resigned as the Twelfth District's representative to the Federal Advisory Council, the Federal Reserve Bank of San Francisco said on Thursday.
Fed bank money printing scams are much more complex and the bank must always keep the appearance of purity at first and second tier levels. Williams understand this. This, Williams told to exit.
It will be interesting to see if the other optics reader involved in Wells Farge, Warren Buffett, pushes Stumpf out at the bank. Buffett's holding company, Berkshire Hathaway, owns the largest stake in Wells Frago stock by far with a 9.5% position.