What Is The Scandal That Broke Up In Wells Fargo

During my courses, I frequently remind students that most corporate executives, accountants, and auditors are honest and ethical. This case provides a stark and powerful example of one such individual. When I discuss a case such as this in my courses, I try to provide other examples of positive role models among corporate executives. Granted, most of these examples do not involve accounting or auditing matters, but, nevertheless, they help to blunt the impression that students may receive from studying my cases that most corporate executives are “crooks.”

There are lots of Unethical Actions that occur in a company. In September 2016, Wells Fargo was involved in a scandal that involved over 5,000 employees had made fake accounts and were eventually fired. There are 269,100 employees in the Wells Fargo organization, 2%, which is 5,300employees of the organization were let go. The Wells Fargo scandal had started in January of 2009 to September of 2016 and more fake accounts are still being made by Wells Fargo. There was so many employees involved in this scandal, therefore making it really bad for the company Wells Fargo. One of the reasons why the employees were fired from the scandal was because the people were feeling pressured to meet hard to reach performance goals. As the employees felt more anxiety, their ethical behavior became

The Wells Fargo scandal involved a variety of stakeholders who have stake in the issue; however, the main stakeholders include the consumers, the employees and their families, and stockholders of the organization. The affect these stakeholders suffer varies, but the ultimate affect the scandal has had is violation of trust by Wells Fargo and its leadership. When examining this situation, the main stakeholders who suffered the greatest harm from the scandal were the customers who fell victim to the fraud and had their privacy violated by an organization they trusted. In the course text, Trevino and Nelson spoke of the importance of trust and its importance in a service economy. Wells Fargo violation of the consumers’ trust has ultimately added

Bank of America Corp employees have alleged that the bank deliberately denied eligible home owners

Banks such as Wells Fargo gain full ownership of foreclosed homes after they were unsuccessful selling the property at auction, explains Investopedia. The common term for bank-owned homes is real estate owned properties, or REO.

Through the history of the United States and the history of corporate fraud, many infamous people and entities have taken advantage and abused the corporate system while finding loop holes or discrepancies to use in their favor. Corporate Fraud consists of activities undertaken by an individual or company that are done in a dishonest or in an illegal manner, and are designed to give an advantage to the perpetuating individual or company (Ivestopedia,1). Investors have been known to throw money around if its meaningless as seen on Wolf of Wall Street and other movies. In such large public firms, its rather difficult to keep track of every dollar, so cutting corners here and there in everyday transactions, is something that becomes a

There is a possibility of leakage of information by some or the other person in the organization. So, I doubt that nobody in Wells Fargo or in regulation did have any part to play in this, maybe they turned a blind eye. I believe that corporates always take the easiest way to get out of any imperative ethical issues, they blame their employees for the wrongdoings and keep top management safe. Like, in this case, Wells Fargo fired more than five thousand employees in response to the issue of cross-selling and no action was taken against the top officials of the company. It seems as if the top management is immune to such ethics-related issues.

About 2009, Wells Fargo came up with a plan to dump unwanted bank products on their depositers.They set "sales quotas" on their employees, and if these quota were not met, employees were fired. The bank set up over a half million credit card accounts to unsupecting costomers of their bank. Extra debit cards were issued and costumers money was moved from one account to bogus account that the bank set up. All the time, Wells Fargo collected a fee for these bogous transactions, from their depositors. Wells Fargo CEO John Stumpf assured Senator's that he and other top bosses knew nothing about this mass breach of the bank's code of ethics. He then went on to blame low-level employees. CEO John Stumpf kept blaming his $12-an-hour employees for this bank-run swindle of depositors money. Stumpf had a bunch of $12 dollar an hour and mid-level managers fired to back up his claim. Some of the fired employees aked, "what about all those calls that we made to your "ethics hotline" telling you about this fraud. Elizabeth WARREN has chastised WELLS FARGO'S CEO, saying "You should be criminally investigated". She continues with the following statements during Senate hearings into the matter, here are some

A proliferation of headlines abounds regarding leaders and questionable ethical behavior. Examples in both public and private sector are easy to find. In business, one can look at the Wells Fargo scandal where employees fraudulently opened customer accounts to achieve management sales quotas and the case of Mylan Pharmaceuticals price gouging of the EpiPen as examples of unethical behavior. A quick open of the New York Times and you can read editorials on the Trump Administration and his use of the White House for personal gain, disregard for the anti-nepotism law and questionable associations and political appointments of persons such as Scott Gottlieb, Carl Ichan, and Steve Bannon. Governor Robert Bently of Alabama is currently being investigated

Bank of America is one of the largest banks in the nation. It is a multinational company and it is recognized by its high revenue value. Unfortunately, Bank of America has endured many complaints and harsh views regarding their lack of ethics. Ethical issues occur when there is a blatant disregard to implement integrity, trust, and responsibility. In some financial institutions, ethical matters are displayed in the way the consumers are treated. Within the past nine years, Bank of America has diminished all of their ethical promises by revealing customer information without their permission; discriminating against consumers based on their race; and manipulating overdraft fees in order to benefit the bank. In order to assess these problems, it is vital to recognize what Bank of America claims to stand for and determine where their most concerning issues are generated from.

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

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.

This work will examine the case 'Banking Industry Meltdown: The Ethical Financial Risk Derivatives" and determine which moral philosophy is most applicable to an understanding of the banking industry meltdown and explain the rationale. The case study will be analyzed and white-collar crimes considered as to whether they are different in any substantive manner from other more blue-collar crimes. This study will determine and discuss the role that corporate culture played in banking industry scenario and the response will be supported with specific examples. This work will postulate how leaders within the banking industry could have used their influence to avert the industry meltdown.