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Henry Wells Fargo

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History of the Company
Henry Wells and William Fargo in 1852 during the gold rush created Wells, Fargo & Co. The company serviced banking and express mailing. As a bank, they would sell drafts for gold. As a mailing service, Wells, Fargo & Co used a variety of transportation such as horses, ships, and telegraph to deliver mail to the Western part of the United States. Eventually, railroads were built and business stretched from the West Coast to the East Coast. However, during the First World War, the delivery network was taken over by the government in need of fast transportation of equipment, food, and people. In the end, Wells, Fargo & Co was left with just one bank. This caused them to rename themselves Wells, Fargo & Co, San Francisco.
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Employee rewards were linked to how many accounts they could open. Employees could reach both the rewards and sales quota by moving money out of one account to another. Banks require a minimum amount of $1,500 in a debit account or else they charge a fee; by moving money into a separate account, the customer’s real account would be under the minimum thus leaving customers to pay that fee. (Wells Fargo, 2017 March 14) By having these accounts, workers would reach their quota and the company got more money; this lead Wells Fargo to hold the title of most profitable and highest bank (Avalos, 2016). Fake unpaid credit card accounts have totaled over $400,000 in overdue fees. The government has charged Wells Fargo to pay five million to refund all customers. Ranging from tellers to corporate, over 5,300 employees who were involved in the scam have been fired. (Blake,…show more content…
Stumpf went before the Financial Services Committee of both houses where he “insisted Wells Fargo never wanted employees to do anything unethical to meet their sales goals.” (Corkey,2016) Stumpf has quit both of his positions due to the intense coverage on the bank. He will still have his pension plan as well as money from his stock. Stumpf’s 40 million stock rewards and salary for the year, however, will be forfeited to the company. Timothy J. Slogan the chief operator has taken over as CEO with Stephen Sanger becoming board chairman. Carrie Tolstedt, the community division leader, had also stepped down; she also will not be receiving any severance or $19 million in stock (Cowley, 2016 September
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