Wells Fargo & Co. announced today that the company’s Chief Executive John Stumpf is retiring and will step down as chairman and chief executive, effective immediately.

The bank’s board of directors elected President and Chief Operating Officer Tim Sloan to succeed him in both roles.

Though he works out of the bank’s San Francisco headquarters, Sloan is a resident of San Marino.

Stumpf joined Wells Fargo in 1982 as part of the former Norwest Bank and became chief executive in June 2007, and chairman in January 2010.

The board also appointed lead director, Stephen Sanger, as board chairman and independent director and former Federal Reserve governor, Elizabeth Duke, as vice chairman.

The company said in a statement that Stumpf “believes new leadership at this time is appropriate to guide Wells Fargo through its current challenges and take the Company forward.”

The announcement comes one month after the bank settled a $185 million lawsuit with the L.A. City Attorney’s Office and two federal regulatory agencies over bank employees opening more than 2 million fake bank accounts without customer consent.