Wells Fargo Scandal
Wells Fargo founded, in 1928, is currently one of the World’s largest financial institutions. The company had a stellar reputation in the financial industry, known to be an honest and ethical organization. Wells Fargo is under investigations by the Senate Banking Committee and Federal Officials to determine the level of participation of its senior leadership. The investigations will determine that Senior Leadership played a major role in creating an environment and encouraging a culture that defrauded customers and increased profits.
The Consumer Financial Protection Bureau (CFPB) determined that they were secretly opening multiple accounts without their customer’s knowledge. CFPB estimated that Wells Fargo employees opened …show more content…
Senate Finance Committee is currently scheduling an investigation into the matter. There will be continued scrutiny concerning Wells Fargo’s handling of their employees. There is also an employee’s class action lawsuit that is being drawn up against the company due to how the employees were mistreated. The actual amount of sales created during that time will be questioned. Their reputation will and has taken a hit; the stock value has also decreased over this fraud. The current fines that have been levied on Wells Fargo have amounted to what the company takes in a day, so that is not a big problem. The tarnished reputation probably hurts worse than the fines. Wells Fargo would like the public to believe it was just a few five thousand, three hundred rogue employees who banded together to commit this fraud without executive management’s knowledge. These lower level employees were wrong for their part in the fraud, but they were exposed to a work environment that encouraged a culture of acceptance by the Leadership Team of Wells Fargo. It is my belief that the investigations will determine that Senior Leadership played a major role in creating an environment and encouraging a culture that defrauded customers and increased
Wells Fargo founded, in 1928, is currently one of the World’s largest financial institutions. The company had a stellar reputation in the financial industry, known to be an honest and ethical organization. Wells Fargo is under investigations by the Senate Banking Committee and Federal Officials to determine the level of participation of its senior leadership. The investigations will determine that Senior Leadership played a major role in creating an environment and encouraging a culture that defrauded customers and increased profits.
The Consumer Financial Protection Bureau (CFPB) determined that they were secretly opening multiple accounts without their customer’s knowledge. CFPB estimated that Wells Fargo employees opened …show more content…
Senate Finance Committee is currently scheduling an investigation into the matter. There will be continued scrutiny concerning Wells Fargo’s handling of their employees. There is also an employee’s class action lawsuit that is being drawn up against the company due to how the employees were mistreated. The actual amount of sales created during that time will be questioned. Their reputation will and has taken a hit; the stock value has also decreased over this fraud. The current fines that have been levied on Wells Fargo have amounted to what the company takes in a day, so that is not a big problem. The tarnished reputation probably hurts worse than the fines. Wells Fargo would like the public to believe it was just a few five thousand, three hundred rogue employees who banded together to commit this fraud without executive management’s knowledge. These lower level employees were wrong for their part in the fraud, but they were exposed to a work environment that encouraged a culture of acceptance by the Leadership Team of Wells Fargo. It is my belief that the investigations will determine that Senior Leadership played a major role in creating an environment and encouraging a culture that defrauded customers and increased