Wells Fargo Case Study

On September 8th, 2016 Wells Fargo announced it would be paying 185 million dollars in fines to settle the dispute it’s employees caused among customers. Employees in the lower division banks were offered incentives based on their sales progress. “Eight is great” was what the employees were bribed with. Entice eight Wells Fargo products to their customers and receive a cash bonus. This demanding quota urged employees to cut corners and create fake credit card and checking accounts; two million accounts in total over a five to seven-year span. These fraudulent accounts accumulated 2.6 million dollars in fees for Wells Fargo, not including the 185 million dollars in fines they paid in city and federal regulations Even after all this money was paid, they fired 5300 employees who took part in this unethical act. After an event occurs you need to propose business actions to ensure this does not happen again. …show more content…
In one of the videos I researched he is seen being criticized for making more money during the progress of this unethical scenario. The lady interviewing him questions his increase of wealth but the CEO had a genuine response since he received a higher title amongst this unethical mess. In no way was what the employees did acceptable and the managers telling them to carry out these decisions resulted in a bad rep for Wells Fargo on all levels of management. “In late July, Wells Fargo admitted to forcing up to 570,000 borrowers into unneeded auto insurance. About 20,000 of those customers may have had their cars repossessed due to these unnecessary insurance