Accounting Fraud In Wells Fargo

In light of recent events, no high end corporation is above regulations and laws of the nation. Wells Fargo, a bank with the highest market valuation in America, has been charged with fraud. This company is worth of $250 million dollars, with customers across 35 countries, totaling 70 million people as global customers (CNN Money). Keeping people accountable for their actions is something that the government has been put in place for, and this is one of the times that they have not promptly caught the problem. Countless companies and corporations throughout the centuries have in some way tried to get away with breaking the law due to accounting fraud. Wells Fargo, although caught in the act, could have been stopped and the issue prevented if more watchful eyes were kept. Both the customers themselves and the account fraud finders could have put a stop to this unlawful situation.
From the customer’s side of things, there arose many opportunities for those involved to speak out. Due to the accusations, 5,300 employees throughout the years were let go for creating millions of unauthorized bank accounts and credit card accounts without their customers knowing since 2011. Because an unauthorized account is not “hidden,” the bank account …show more content…
Wells Fargo did not avoid these punishments, and ended up paying $185 million for fines brought to the government’s attention, and $5 million to refund customers for their late fees and damaged credit scores. "One wonders whether (the CFPB) penalty of that amount is enough," said David Vladeck, a Georgetown University law professor and former director of the Federal Trade Commission's Bureau of Consumer Protection. "It sounds like a big number, but for a bank the size of Wells Fargo, it isn't really." (CNN MONEY) Regardless of the fines brought upon the company, many customers have left Wells Fargo due to the distrust now