Wells Fargo : An Investigation

Knowledge is considered as one of the most important and competitive resource for sustenance of the organisation (Zack, 1999). It can be compared to the strategic resource that can be used and applied in various frames of the organisation. Experienced managers in the organisations believe that company can receive strategic advantage through knowledge and not the strategies or actions implemented by competitors. Knowledge can be regarded as a strong approach that opens numerous ways of success. It is that weapon that help organisation to evaluate solutions in financial and other professional difficulties.

It wasn't until the 90s did Wells Fargo's luck seem to turn around then in 1995 Wells Fargo became the second largest bank in California and the seventh largest bank in the United States with $51 billion in assets. Later on Wells Fargo faced another huge failure when they merged with First Interstate Bancorp. Both companies were considerably different with Wells Fargo being mite technically inclined than the other and inner disputes over how they would ruin things came to light. After this Wells Fargo entered into a friendly merger with Norwest Corporation taking us into the more modern era of Wells

The questionable issue really close by kind of is Wells Fargo essentially has discovered generally phony records that definitely were made without buyers having any information that the records for the most part were being made in a kind of big way. The underlying examination led uncovered that out of nighty-three point five million records audited around two point one million basically were resolved to definitely be sort of phony (McCoy, 2017), which definitely is fairly noteworthy. The initial examination uncovered that out of one hundred sixty-five million records inspected near three point five million of them were found to be unapproved accounts, or so they particularly thought. The organization really has chosen to literally organize its picture fiscally to the world as opposed to literally remain consistent with what it particularly was established for, sort of contrary to popular

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

According to Emily Glazer of the Wall Street Journal, Wells Fargo’s Sales Practice Scandal is a result of their corporate culture. The upper level executives could be getting nothing as their bonuses this year as the board continues to decide. This is because those men and women are responsible for the actions of those who they employ/supervise Making money has been the firm’s primary goal for many years and the higher up’s all the way down to the lower managers are responsible for creating this type of environment. According to the Wall Street Journal “One manager…in an email peppered with exclamation points and capital letters…urged her employees to ignore the bosses and get sales up at any cost, says someone who saw the email.” This is a perfect example of terrible managing. Throwing ethics and good conduct out the window just so that a few of the staff get bonuses at the year’s end is just wrong. In class, we constantly discuss the ethics involved in business and recently we’ve spent a lot of time on corporate culture. Shockingly enough, in last year’s annual report the company

Strong intro: Advocate is addressing necessary points during into- appreciation, disclosure, intro, name, concern. (adjusting tone appropriately)

An example of a company that have maintained their same brand identity for years is Wells Fargo. Wells Fargo has been around for more than 160 years and they have kept their logo for that long too. Their horse and carriage logo has remained on checks, websites, and more. This has allowed their company to be successful and push through the hard times. Customers might be more likely to choose Wells Fargo as their bank because they know that they have been around for a long time.

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.

I really don’t have any clue, but I look online and i have found an article about Wells Fargo. Apparently Wells Fargo have set the vision for an organization. Wells Fargo vision is that they want to “satisfy all their customers’ financial needs, ect. Wells Fargo is the largest bank in the U.S. by market capitalization. It beat Bank of America and JP Morgan in last few years. Barron’s ranked it as the best financial services company in the world. Wells Fargo is the only “AAA” credit-rated bank in the United States. This is the highest possible rating from Moody’s.

In 2016, federal regulators caught Wells Fargo creating millions of fake bank and credit card accounts; over 1.5 million bank accounts were created. Furthermore, federal regulators also said that 565,443 credit cards were created, and 1400 of those accounts had been charged over 400,000 dollars in fees. Wells Fargo employees broke many ethical and legal boundaries and engaged in counterproductive work behavior.

Wells Fargo is one of the four largest banks known as the “Big 4” along with Bank of America, Chase, and Citibank. Each one of these bank holding assets are well above the low billions. Within in the last couple of weeks, there have been many reports in the media regarding the illegal banking practices of Wells Fargo. Federal prosecutors have launched a probe into Wells Fargo’s unscrupulous and intense sales tactics.

Wells Fargo is known to be a very strong financial lending company. Their strengths is the high cash volume of over $500 billion in assets as well as being a powerful distribution in the banking industry. Another strength is that they have relationships to serval different industries such as real estate, technology, media, financial services, retail, and many others. Since the 1800’s they have main their roots into the mind of individuals of being a strong and trustworthy company. Wells Fargo is a well-known name and so is their marketing strategy. The company is fundamentally base on hardworking and smart employees from all over types of diverse lifestyles. Being considered America largest bank ranking at number twelve in the most admired companies worldwide. A strategy that I believe Wells Fargo should take maximum advantage of its strength will be there market strategy. Wells Fargo is well recognize for their marketing strategy in the banking industry, so by marketing well their services is a way of building strategy like a bridge. It help deliver these services nationwide and reach the company goals by using various means available. Overall Wells Fargo strengths is the reason why they are top competitors. Now like any other company Wells Fargo has their weaknesses, these weaknesses include confusion or large scale activity. Being such a large company it is hard to personally know all individuals within the community. By being so large they become targets of fraud and

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.

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