Embattled Wells Fargo chairman and CEO John Stumpf has retired with immediate effect following a sham accounts scandal, the San Francisco bank announced Wednesday.

The San Francisco bank said Wednesday that Stumpf will also relinquish his title as chairman. Its chief operating officer, Tim Sloan, will succeed Stumpf as CEO.

Stumpf had led Wells Fargo since 2007.

Stumpf's departure from the U.S. commercial and retail banking giant caps mounting public outrage after the bank admitted last month that employees had opened millions of deposit and credit card accounts without customer's knowledge in order to meet sales quotas.

Stephen Sanger, the bank's lead director, will serve as the board's non-executive chairman. Independent director Elizabeth Duke will serve as vice chair.