2. Fake Account Scandal
■ Scandal lasted for nearly a year
■ 1.4 million additional fraudulent accounts
■ Total of 3.5 million potentially fake bank and credit car accounts
■ Bank admitted that it erroneously charged over 800,000 customers for car loan
insurance they no longer needed
– Causing 25,000 car to get repossessed
3. Wells Fargo Response
■ Wells Fargo blamed unrealistic sales goals on employees for encouraging
unauthorized bill pay and bank accounts openings.
■ Now pay 6.1 million to refund customers
■ 910,000 to refund customers for improper online bill payment enrollments
■ Fired 5300 employees
■ Agreed to 142 million national class action settlement that dates back to 2002.
4. Wells Fargo Reform
■ CEO John Stumf : public relations approach minimized the scandal and disclaimed any
problem at all
– Fired
■ Hired a new CEOTim Sloan , former president and chief operating officer
■ Former Federal Reserve Governor Elizabeth Duke will ascend to boards chair
5. My Opinion as aWells Fargo Customer
■ RemoveWells Fargo board members
■ Although they fired 5300 employees, the majority were low-level employees
– Compelled by superiors to open fraudulent accounts
■ Personally monitor my accounts on a weekly basis
■ Will be leavingWells Fargo this month
6. Works Cited
Egan, Matt. Wells Fargo uncovers up to 1.4 million fake Accounts.
http://money.cnn.com/2017/08/31/investing/wells-fargo-fake-accounts/index.html
