Updated at 6:15pm ET with Wells Fargo statement.

The chairman and chief executive of Wells Fargo & Co., John Stumpf, has resigned effective immediately in the aftermath of a scandal over the bank's past practice of secretly selling services to unsuspecting customers.

Stumpf will be replaced by President and Chief Operating Officer Timothy Sloan, long considered to be Stumpf's eventual successor.

This month federal regulators fined Wells Fargo $185 million for opening checking and credit card accounts on behalf of customers who had no idea that was happening. The bank has promised to try to make restitution.

But that's a lot harder than it sounds. A big question is how to compensate people whose credit scores were hurt by what the bank did.

Former Wells Fargo employees who say they were fired for following the law have filed a class-action lawsuit seeking $2.6 billion in damages as the fallout continues over the creation of millions of secret, unauthorized bank accounts.

Two employees are named in the lawsuit, filed on behalf of all the bank's employees in the past 10 years who were penalized for not making sales quotas.

Facing off with the CEO whose massive bank appropriated customers' information to create millions of bogus accounts, Sen. Elizabeth Warren, D-Mass., had sharp questions Tuesday for Wells Fargo CEO John Stumpf. She said Stumpf made millions of dollars in the "scam," telling him, "You should resign ... and you should be criminally investigated."

Wells Fargo Bank has been ordered to pay $185 million in fines and penalties to settle what the Consumer Financial Protection Bureau calls "the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts."

Thousands of Wells Fargo employees opened the accounts in secret so they would get bonuses for hitting their sales targets, according to investigators. More than 2 million deposit and credit card accounts may have been created without customer authorization.

Demand is soaring for Seattle-area homes. Buyers who want to succeed are bidding up prices. This Seattle house recently sold for $100,000 over the asking price.
Seattle MLS

House prices in Washington state are rising faster than in any other state in the country.

Rents are also rising, and it’s all because Seattle companies are hiring. It’s an unusual predicament for people looking for a foothold in this real estate market.

Associates of President Vladimir Putin of Russia have channeled as much as $2 billion through offshore accounts, banks and shadow companies, according to a massive leak of documents from a Panamanian law firm.

More than 11 million documents, dubbed the Panama Papers, show how dozens of rich and powerful people around the world have used offshore and secret accounts to dodge taxes and sanctions and launder money.

The sign for Rainier Brewing Company, brewed in Seattle from 1878 to 1999. The company is now owned by Pabst Brewing Company. Since Rainier left the city, however, micro and nano brewers have popped up in the city.
Flickr Photo/Wonderlane (CC By 2.0)

If Larry Adams, a bartender at Blue Moon Tavern, were serving Bernie Sanders, he’d give him cider. A can of Schilling, because that’s what they have there.

Taking on Wall Street makes for good politics in the Democratic Party. And several of the candidates at Tuesday night's debate had tough words about big banks. That was particularly true of former Maryland Gov. Martin O'Malley and Vermont Sen. Bernie Sanders.

Although he didn't say so directly, O'Malley suggested several times that consolidation in the banking business was a big factor in the 2008 financial crash and that the U.S. economy remains vulnerable because of it.

Cyberthieves steal hundreds of millions of dollars a year from the bank accounts of U.S. businesses. And many business owners are surprised to find out their bank is not obliged to make them whole.

Dr. David Krier's Volunteer Voyages is one of the victims. Krier says he lost over $14,000 through fraudulent withdrawals from his business account, and he says his bank "refused to cover any of my losses."

Marcie Sillman speaks with Representative Derek Kilmer, a Democrat representing Washington's 6th Congressional District, about the Senate passage of The American Savings Promotion Act, a bipartisan bill to allow more financial institutions nationwide to offer prize-linked savings accounts.

Flickr Photo/megawatts86 (CC-BY-NC-ND)

Ross Reynolds talks with Gwendolyn Hallsmith, executive director of the Public Banking Institute, about the benefits of creating a public bank in Seattle.

Flickr Photo/javacolleen (CC-BY-NC-ND)

Seattle’s HomeStreet Bank has sold a quarter of its mortgage-servicing business to a bank in Atlanta. It’s a sale that moves $3 billlion worth of mortgage relationships out of state. 

Bank Of America's Penalty: As Big As It Seems?

Aug 22, 2014

Ross Reynolds talks with Dean Baker, co-founder of the Center for Economic and Policy Research, about the almost $17 billion settlement against Bank of America and why it's not as big as it seems.

The Tangled Web Of Payday Lenders On Tribal Lands

Jul 30, 2014

David Hyde talks with financial consultant Shawn Spruce, a member of the Pueblo tribe in New Mexico, about the intersection of payday lenders and Native American tribes.

Payday lenders are increasingly situating themselves on tribal lands across the country to skirt state laws, ensnaring Washington residents. Many tribes are working to save their members from unscrupulous loans.