Our Paper Today Will Be On Wells Fargo. Wells Fargo Is

Wells Fargo’s deposits totaled $847.9 billion at December 31, 2010, compared with $824.0 billion at December 31, 2009. (p 53 on 10k)

Wells Fargo & Company is an American multinational operating in banking and financial services, headquartered in San Francisco. Known as fourth largest bank in United States of America, Wells Fargo has created benchmark in bank deposits, home mortgage servicing and debit cards. The company

Businessmen in New York establish Wells, Fargo and Company, destined to become the leading freight and banking company of the West.

Wells Fargo fired 5300 employees. The employees took millions in fees by regularly opening new

Wells Fargo is an American multinational diversified financial services company. The company operates throughout the world. It is one of the largest banks in the US in the state of assets. Moreover, Wells Fargo is the largest market capitalization bank in the US. It takes the second category in the field of deposits, delivery of home mortgage services, and delivery of credit cards. The company has its headquarters in Francisco, California. The company has coverage of more than twenty-four states in the US. In every state, it has established its headquarters that act as distribution and storage regions for the company's products and services. The company offers insurance, banking, mortgage, and consumer financing through the sale and distribution of its networks across the US. The advantages of Wells Fargo Company are widely distributed: they have helped it realize a stable market in the United States and around the globe.

Wells Fargo has a social responsibility to its customers to fulfill their economic, legal, ethical, and philanthropic needs. The scandal has presented numerous legal issues. It was negligent of the bank's executives and managers by placing impossible sales goals on lower level employees then encouraging, and pressuring them to meet these goals. The use of customer's information for fraudulent purposes was an invasion of customers privacy. Wells Fargo has violated the Federal Trade Commission Act which protects customers from unfair practices and has also violated the Sarbanes-Oxley Act (Thorne, 2011).

Wells Fargo has been penalized and has been fined 185 million dollars because they were opening fake accounts.

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,

Wells, Fargo & Co. came into America in the age of economic boom and westward expansion, and

On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.

** Wells Fargo’s decentralized corporate structure gave the Community Banks Leadership the freedom to manage as they pleased and created an environment that rejected any oversight from outside the community banks ranks. Lack of centralized reporting and oversight made it difficult for the corporate office to identify trends or warning signs that lead to issue. Most of the warning signs were occurring at the local level, but there were a few major signs of a problem that bubbled up to the corporate which they seemed to ignore or did not identify as a potential problem.

The ethics of the bank requires that there is ethics of integrity. It is supposed to be created through a culture in the bank and it should be one of the banks priorities because this is a business and they gain the profits from the people they serve on daily basis. Even if the bank shall survive this wave of scandal is so difficult now to convince any client to join this Wells Fargo which shall cause them a lot of money. Also all the old customers may start withdrawing and looking for other banks which they feel are more secure when they are keeping the money for them. It is so hurting and distrustful for a banking instead of accruing money in the accounts of their customers what they wells was doing was that it was misusing their money and giving them extra fees.

In September of 2016, it was revealed that there was alleged misconduct at one of the largest and safest banking institutions in the United States. Wells Fargo Bank was ranked among the nation’s safest financial institutions according to an analysis done by Global Financial, (Inside Tucson Business, 2009). Alleging that between May 2011 and July 2015, there were more than 2 million bank accounts or credit cards opened for customers without their knowledge or permission (Blake, 2016). Clients started complaining the they were receiving debit/credit cards from the bank that they had not ordered. Wells Fargo employees also started complaining that about the unethical behaviors they witnessed or were asked to participate in to the Human Resource Departments, the bank’s internal ethics hotline, branch’s individual managers and supervisors. All which led to the discovery of the fraud scandal.

Scandals in the business world are not an uncommon topic to appear in new headlines. Recently Wells Fargo has fired over 5,000 employees for creating over 2 million fake accounts. New bank and credit card accounts were created without prior knowledge from their customers. The accounts that were created resulted in those customers inquiring fees such as overdraft fees. These fake accounts have been created over a five-year timeframe.

Well Fargo is currently being sued over 185 Million Dollars and 5,300 were fired for making fake account.