Wells Fargo Case

In California, eight Wells Fargo employees were convicted of committing fraud facing a maximum penalty of 30 years in federal prison, also each employee is charged with at least one count of aggravated identity theft, which carries another two years in prison (https://www.justice.gov/usao-cdca/pr/eight-people-charged-bank-fraud-scheme-allegedly-used-information-stolen-wells-fargo). In the wake of the scandal, over 5,300 employees were fired over the course of five years for their involvements in the creation of the fake accounts. Some of the initial whistleblowers of the scandal faced retaliation by being terminated for speaking out against the orders to open fake accounts. CNN Money correspondent Matt Egan spoke with Bill Bado, a former employee of Wells Fargo, who has not been able to security another banking securities job since his termination for calling the Ethics Hotline to report the fraudulent activities.

In the year eighteen fifty-two, two men by the names of Henry Wells and William Fargo chose to establish a monetary administrations organization that we particularly know today to be Wells Fargo (Wells Fargo, 2017), which actually is quite significant. Before establishing the organization, Mr. Wells and Mr. Fargo chose to ground their organization in five standards which generally turned into their five very essential esteems. Their first standard being "individuals as an aggressive esteem" which implies an association with a colleague will literally prompt a definitely superior association with the clients, or so they particularly thought. Second "morals" Wells Fargo prides its self on being a straightforward organization and

The article,”To Disclose or Not to Disclose? Wells Fargo Woes Shine Light on a Knotty Problem

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 is a well known banking company that has recently been in the news for some not-so-good reasons. The Wells Fargo company has been around for a long time and is trusted by their many customers to treat them fairly when it comes to opening new accounts or managing current accounts. However, according to some of Wells Fargo’s team members (what they call their employees), Wells Fargo has “strict mandates to sign existing customers up for additional products,” (Davidson 1). This means that they want their customers to open new accounts, get new credit cards, transfer a 401(k), and/or take out a mortgage. Since most customers refuse to do so, some of the employees thought that they should go ahead and open new accounts without the customers’ consent. This later back fired when the customers received late notices on payments for the accounts they did not agree to open and did not know they had. Similar actions were happening at Wells Fargo banks

fact, when U.S. senators requested the Labor department investigate the matter, they found lawsuits that went all the way back to 1999 for the same type of behavior (Egan, 2016). According to the Fair Labor Standards Act of 1938 the maltreatment behavior of the Wells Fargo managers against their employees was unlawful, this act was created to protect employees from being forced to work extra hours for little or no pay and instead guaranteed time-and-half rates for anything over a 40-hour workweek (Thomas, 2014). In response to these claims Wells Fargo issued a statement that insists they comply with the FSLA and that their employees are paid fairly. However, once again Grourley testified that during his time with the bank, managers would

In my opinion, this scandal is much deeper then it appears. It looks like we have a case were the company is corrupt at the very top, where these unreasonable expectations came from. Employees of the company felt like they had to go to extreme measures and do illegal things simply to keep their jobs. This is not fair nor should it be allowed. The main underlying problem in this situation is that Wells Fargo is not being ethical towards their employees. These employees have responsibilities, such as feeding themselves and their families, so of course they will go to extreme measures to keep their job. The more I read into this case the more I felt like the heads and directors of Wells Fargo were in the wrong more then the people that were actually

The questionable issue close by is Wells Fargo has discovered phony records that were made without buyers having any information that the records were being made. The underlying examination led uncovered that out of nighty-three point five million records audited around two point one million were resolved to be phony (McCoy, 2017). The optional examination uncovered that out of one hundred sixty-five million records inspected near three point five million are sorted to be unapproved accounts. The organization has chosen to organize its picture

According to an article on www.housingwire.com, 2017, Wells Fargo CEO, Tim Sloan, made the decision to close over 400 branches in the United States. The fake account scandal fueled this decision because the company lost 746 million dollars in revenue. The closures can save Wells Fargo about 2 billion dollars by the end of

Consequently, Wells and Fargo did what was best for business, they would not hire a person because you endorse or support. However, these two men ethical standards for hiring were for the needed to keep the company moving forward to be successful. Therefore, everyone that worked for Wells Fargo had a responsibility to uphold and follow the policies that were set up by the company, no matter what levels or title you hail in the company. However, when dealing with other peoples’ money their ethics in the place where there is truthward people work for you. Some of these people worked in accounting make sure the book was right. By ensuring that all transactions are properly documented because back then there were no computers, you would have to keep up with a paper trail. By ethical standers, the organization’s is well established, their moral conduct to the customers and the business. Furthermore, Wells Fargo ethical morals were to implement people that have the ability excellent verbal, written, and interpersonal communication skills. Outstanding negotiating, conflict management, and decision-making skills and ability to interact with all levels of

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.

According to the more than 5300 Wells Fargo’s former bank staff, direct cause of fraud is the bank directly linked employee compensation and sales performance. To face the difficulty of matching the sales aim, they had no other choices but to take a risk, and ultimately will inevitably damage to the interests of customers as the

On Thursday, September 8, 2016, federal regulators found that over two million fake accounts were created in a scam from Wells Fargo (Dugan). According to the New York Post, it has just been discovered that the Wells Fargo former senior executive vice president, Carrie Tolstedt, is linked to the scamming of Wells Fargo customers (Report). The many other employees were fired since the scam was discovered in 2011, however, according to the New York Post, Tolstedt was praised by Wells Fargo CEO John Stumpf, allowed to leave, and not lose any of her compensation (Report). This incident was highly unethical and resulted in customers and employees losing their trust in Wells Fargo.

In “Wells Fargo Pays $1 Billion to Federal Regulators” article, the author wanted to tell that the bank Wells Fargo forced to the customers to pay the mortgage interest and they also forced customers to buy the unnecessary auto insurance policy. Moreover, Wells Fargo also creates fake accounts in customers’ name. For these several unlawful acts, this bank has been charged multiple times by Federal Regulators. There are 100 open investigations under this bank name.

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.