AN ANALYSIS OF THE WELLS FARGO ACCOUNT SCANDAL
INTRODUCTION
Paying bank fees may be one of the most annoying, unwanted situations customers experience in the banking system. Imagine the fees paid suddenly becoming multiplied, and you were paying for accounts you didn’t even sign up for. For Wells Fargo customers, this nightmare became a harsh reality. The 185 million dollar Wells Fargo Bank account scandal began in 2011 and was revealed to the public five years later after when over 2 million bank accounts or credit cards were opened or applied for without customers’ knowledge or permission.
The goal of this report is to review one exclusive scandal—The firing of over 5,000 Wells Fargo employees and opening of over 2 …show more content…
She asked him a series of questions including the following: “You have stated that you are the one accountable, what have you done to resolved this problem, have you resigned as CEO or chairman of Wells Fargo?” “Have you returned one nickel of the millions of dollars that you were paid while this scam was going on?” “Have you fired a single senior executive?” Stumph stated that he had not resigned, he had not returned a single nickel of his personal earnings, and he had not fired a single chief executive. The only change he said he made was firing the lower level management who do not have the money to hire a good enough lawyer to defend themselves. By pushing the blame to the lower level management of the company, Stumph shows poor leadership. During the scam, the value of each of Stumph’s personal 6.75 million shares of stock in Wells Fargo went up 30 dollars which comes out to more than 200 million dollars in gains, all for Stumph personally. While Stumph was the CEO of the company, Wells Fargo executive, Carrie Tolstedt also played a large role in the scandal. She was in charge of the major unit where Wells Fargo employees opened more than 1.5 million fraudulent accounts. When Tolstedt caught wind of the scandal being exposed to the public and investigated by the federal government, she immediately announced her …show more content…
According to this statement, customer appreciation is the heart of the company; they state they are in existence to serve their customers and help them reach the financial well-being they desire. This statement is why this case study is worth examining. As this case is under review, corporations similar to Wells Fargo should consider the following:
• Employee treatment and business environment is crucial: The old saying, “from the ground up” truly applies to the situation Wells Fargo is currently handling. Treating your employees fairly is vital to running a successful company. Firing them for not meeting unattainable goals and forcing them to act unethically to keep their jobs is not how one should act upon the people holding the foundation of the company together.
• Taking responsibility for ones actions is a valued component of respect in today’s society: As the investigation continues on the scam, Executives and Branch leaders are being forced to exit their positions. Bonuses are being taken away and possibilities of incrimination are being discussed. By taking responsibility, this problem could have been resolved years ago. Because there was no decision to end the scam or responsibility taken for wrongdoing, society is enforcing its full wrath on the company. Customers are leaving the organization and media has pushed to
INTRODUCTION
Paying bank fees may be one of the most annoying, unwanted situations customers experience in the banking system. Imagine the fees paid suddenly becoming multiplied, and you were paying for accounts you didn’t even sign up for. For Wells Fargo customers, this nightmare became a harsh reality. The 185 million dollar Wells Fargo Bank account scandal began in 2011 and was revealed to the public five years later after when over 2 million bank accounts or credit cards were opened or applied for without customers’ knowledge or permission.
The goal of this report is to review one exclusive scandal—The firing of over 5,000 Wells Fargo employees and opening of over 2 …show more content…
She asked him a series of questions including the following: “You have stated that you are the one accountable, what have you done to resolved this problem, have you resigned as CEO or chairman of Wells Fargo?” “Have you returned one nickel of the millions of dollars that you were paid while this scam was going on?” “Have you fired a single senior executive?” Stumph stated that he had not resigned, he had not returned a single nickel of his personal earnings, and he had not fired a single chief executive. The only change he said he made was firing the lower level management who do not have the money to hire a good enough lawyer to defend themselves. By pushing the blame to the lower level management of the company, Stumph shows poor leadership. During the scam, the value of each of Stumph’s personal 6.75 million shares of stock in Wells Fargo went up 30 dollars which comes out to more than 200 million dollars in gains, all for Stumph personally. While Stumph was the CEO of the company, Wells Fargo executive, Carrie Tolstedt also played a large role in the scandal. She was in charge of the major unit where Wells Fargo employees opened more than 1.5 million fraudulent accounts. When Tolstedt caught wind of the scandal being exposed to the public and investigated by the federal government, she immediately announced her …show more content…
According to this statement, customer appreciation is the heart of the company; they state they are in existence to serve their customers and help them reach the financial well-being they desire. This statement is why this case study is worth examining. As this case is under review, corporations similar to Wells Fargo should consider the following:
• Employee treatment and business environment is crucial: The old saying, “from the ground up” truly applies to the situation Wells Fargo is currently handling. Treating your employees fairly is vital to running a successful company. Firing them for not meeting unattainable goals and forcing them to act unethically to keep their jobs is not how one should act upon the people holding the foundation of the company together.
• Taking responsibility for ones actions is a valued component of respect in today’s society: As the investigation continues on the scam, Executives and Branch leaders are being forced to exit their positions. Bonuses are being taken away and possibilities of incrimination are being discussed. By taking responsibility, this problem could have been resolved years ago. Because there was no decision to end the scam or responsibility taken for wrongdoing, society is enforcing its full wrath on the company. Customers are leaving the organization and media has pushed to