banking sales practicesOn October 25, 2016, Timothy J. Sloan, the new CEO of Wells Fargo bank, apologized to 1,200 of his employees in Charlotte, North Carolina. Sloan had been namedLynch, Luann J.Cutro, CameronSocial Science Electronic Publishing...
Aside from the Great Recession and the bank failures of last year, few issues in therecent banking erahave been more scandalous thanWells Fargo's(NYSE: WFC)infamous phony-accounts scandal. Employees at the bank opened millions of credit card and bank accounts without customers' c...
Wells Fargo's fake-accounts scandal, on top of a long list of other problems, has hurt its stock price, caused legal expenses to soar andtarnished its reputation. The bank has been hit with aseries of penalties, includingunprecedented sanctions from the Federal Reservethat prevent it from grow...
Wells Fargo isn't the only bank where heavy sales pressure led employees to open fake accounts. A federal review triggered by the Wells Fargo scandal found that "weaknesses" at other banks led employees to open accounts without proof of customer consent — just like Wells Fargo did — accordin...
Some of the initial whistleblowers of the scandal faced retaliation by being terminated for speaking out against the orders to open fake accounts. CNN Money correspondent Matt Egan spoke with Bill Bado, a former employee of Wells Fargo, who has not been able to security another banking ...
Wells Fargo Fraud Scandal In September of 2016, it was revealed that there was alleged misconduct at one of the largest and safest banking institutions in the United States. Wells Fargo Bank was ranked among the nation’s safest financial institutions according to an analysis done by Global Finan...
Administrative evil at Wells Fargo Consider the following headline: “That Wells Fargo account scandal was even worse than you can imagine” (Hiltzik, 2020). The scandal refers to sales employees at Wells Fargo Bank opening millions of unauthorized customer accounts and then charging fees to unsusp...
With the latest scandal entangling fintech middleman Synapse and its partner banks, it wouldn’t be surprising for more bankers to embrace “boring” over “daring,” with executives fearing what could go wrong with banking-as-a-service partnerships or, more broadly, with their fintech pairings...
Wells Fargo's stumbles have left its stock price badly behind rivals. Although Wells Fargo is up 16% since the scandal erupted two years ago, that's far behind the 47% rally for Citigroup (C) and 70% spike for JPMorgan Chase (JPM). Bank of America (BAC) has nearly doubled over tha...
The Wells Fargo retail banking scandal of 2016 is a second example of widespread lying. For years, Wells Fargo employees secretly issued credit cards without a customer's consent—an assumed consent lie. The employees created fake email accounts to sign up customers for online banking services. ...