Case Study: Wells Fargo & Company
Wells Fargo & Company is a neighborhood based financial services company headquartered in San Francisco, California, with many awards such as “Most Admired” amongst the world’s leading banks by Fortune magazine and "Best U.S. Bank” by The Banker magazine. These awards were given before the whole scandal blew up and tarnished the Wells Fargo name. Due to many allegations, as of today they are not so highly acclaimed, losing many of their customers. The Wells Fargo & Company fired nearly 5, 300 employees due to illegally signing up customers for credit cards and checking accounts, without their consent. In October 2016, they were placed under scrutiny by the California attorney general for suspected criminal identity theft for the formation of
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According to Paul Blake, of ABC News, they were fined $185 million for more than hundreds of thousands of unauthorized deposit accounts and tens of thousands of credit cards that were opened or applied for lacking customers' knowledge or authorization between May 2011 and July 2015. The company terminated nearly one percent of their workers due to the fact of associations with the scandal. When they were exposed, the company made a statement addressing “We regret and take responsibility for any instances where customers may have received a product that they did not request”. According to the Office of the Los Angeles City Attorney, the employees were opening and backing accounts with cash from customers’ obtainable accounts in order to “satisfy goals and earn financial rewards under the bank’s incentive-compensation program”. Around September 22, 2016, the U.S Department of Labor were requested by a group from the Senate Democrats to secure an investigation leading to whether Wells Fargo desecrated the Fair Labor Standards Act. A spokesperson of the Department of Labor stated that they acknowledged the letter written to them from the senators and that they do take these matters seriously. On this day, the CEO of Wells Fargo & Company John Stumpt resigned from his position. The 23rd of September, six
According to Paul Blake, of ABC News, they were fined $185 million for more than hundreds of thousands of unauthorized deposit accounts and tens of thousands of credit cards that were opened or applied for lacking customers' knowledge or authorization between May 2011 and July 2015. The company terminated nearly one percent of their workers due to the fact of associations with the scandal. When they were exposed, the company made a statement addressing “We regret and take responsibility for any instances where customers may have received a product that they did not request”. According to the Office of the Los Angeles City Attorney, the employees were opening and backing accounts with cash from customers’ obtainable accounts in order to “satisfy goals and earn financial rewards under the bank’s incentive-compensation program”. Around September 22, 2016, the U.S Department of Labor were requested by a group from the Senate Democrats to secure an investigation leading to whether Wells Fargo desecrated the Fair Labor Standards Act. A spokesperson of the Department of Labor stated that they acknowledged the letter written to them from the senators and that they do take these matters seriously. On this day, the CEO of Wells Fargo & Company John Stumpt resigned from his position. The 23rd of September, six