The retirement of Wells Fargo CEO John Stumpf is a step in the right direction, but more needs to be done to address the scandal that rocked the bank, Rep. Carolyn Maloney, D-N.Y., told CNBC on Thursday.
Stumpf retired effective immediately Wednesday after taking heat over the opening of 2 million accounts without customer authorization. Wells Fargo's president and chief operating officer, Tim Sloan, was chosen to succeed him as CEO and the bank's lead director, Stephen Sanger, will serve as the board's nonexecutive chairman.
"They still have vowed that they will make every customer defrauded whole and we need to see what steps they are going to take to compensate their customers that were defrauded," Maloney said in an interview with "Closing Bell."
Stump appeared in front of committees in both the Senate and House of Representatives before his departure from the company. Maloney was one those who grilled Stumpf during his House Financial Services Committee testimony.
She told CNBC she hopes the change in leadership will help restore confidence in Wells Fargo.
However, "it's hard to have confidence in a company that opened up 2 million fraudulent accounts, fired 5,000 of their employees and claimed they didn't know anything about it," Maloney said.