Wells Fargo to split CEO and chairman positions

Troubled US bank Wells Fargo has announced it will separate the positions of chief executive officer and chairman at the institution, after coming under pressure from investors.

The investment bank has altered the structure of its boardroom after facing heavy criticism from all quarters after admitting to sales malpractice which led to the creation of fake accounts and credit cards in the names of its customers.

When John Stumpf quit as head of the bank earlier this year, the positions were split with Timothy Sloan being appointed as chief executive and Stephen Sanger as chairman.

However, Wells has succumbed to the pressure by changing its by-laws to make the split a permanent one ion the bank's boardroom.

State treasurers in Illinois and Connecticut were among those who were calling for the division of responsibility with the former's Michael Frerichs saying the move will increase accountability.

"This change to ensure accountability and stronger oversight will benefit everyone with an interest in the company," Frerichs said. "While an important step forward, we need to continue to encourage companies to do the right thing for the right reasons."

Many of the other big investment banks on Wall Street have a combination of the two positions, including JPMorgan Chase's Jamie Dimon and Goldman Sachs' Lloyd Blankfein. Dimon has also faced pressure from shareholders to split his roles.