Wells Fargo and Company (WFC - Analyst Report) confronts a common claim, documented by Mike Feuer, lawyer of the city of Los Angeles, for unscrupulously treating its workers and clients. Per the recording, the money related fat cat has been blamed for setting illogical deals focuses for its workers, instigating them to embrace false means for meeting the set amounts. Feuer started examining the bank subsequent to perusing a Dec 2013 Times report, in which a few previous and present representatives of Wells Fargo related their encounters of the huge deals weight at the bank.…
The auditors should have raised concerns over several fraud risk factors that were present. There was a perceived ethical disconnect between JP Morgan’s Code of Conduct and the “tone at the top” that upper management created. Jamie Dimon built an environment that allowed employees to do practically anything to achieve more impressive earnings. A special group was permitted to function outside the established business standards. According to Spoehr (2012), this group included individuals with strong personalities and significant clout, and these employees were excluded from ordinary review, oversight, and approval practices in place.…
JPMorgan Chase is one of the oldest and most respected banks in the United States. However, during the summer of 2012 Chase announced trading losses and bad investment decisions that resulted in a loss of approximately $5.8 billion. Not only did they report this substantial loss they admitted to falsifying their first quarter reports, were they where attempting to conceal the massive loss. Three months prior to this event JPMorgan Chase was viewed as the top American bank. The first question to be discussed in this paper will be what actions can Administrative Agencies such the Securities and Exchange Commission (SEC) and…
During the years 2009 thru 2015, Wells Fargo has had to participate and defended a plethora of legal issues that were filed against them or their subsidiaries. Throughout these years Wells Fargo was involved in a total of 28 different legal issues. Many of the lawsuits main contributor were Wachovia. These legal issues ranged from violations to bankruptcy laws, wrongful termination to contracts, documents containing untrue statements, targeting and steering minorities into high-cost mortgages, additional mortgage lawsuits, breach of contract with Visa/Master…
Following the SEC’s inability to control Wall Street fraud, the U.S. Securities and Exchange Commission received sharp criticism from the public for its seemingly weak enforcement of Wall Street’s too big to fail banks. Many believe that the agency is unethically protecting Wall Street fraud due to the incident in 2010 when the National Archives had contacted the SEC expressing concern that an unauthorized destruction of federal records had…
Ethics or the lack thereof, in business, is a very hot topic in our society today. It seems as if, a person cannot turn on the evening news or pick up a newspaper without seeing a story centered on unethical business practices in the workplace. With that being said, an individual might ask the following questions: “Why are so many organizations resorting to unethical business practices and what is fueling these new behaviors”? More importantly, is human resources aware of what is transpiring within their own company?” Additionally, what level of involvement does human resources have in these often highly public but sensitive situations? During my research, pertaining to businesses in the news for unethical behavior I found a very interesting article about Wells Fargo & Company. I found this article particular interesting because I do much of my personal banking at Wells Fargo bank.…
Another significant event in Wells Fargo history is in 1981 a Wells Fargo employee, specifically a Wells Fargo Operating officer, embezzled $21.3 million, which was reported the largest embezzlement ever. The employees plead guilty to writing phony debit and credit receipts to his friend’s accounts, while receiving a $300,000 cut.…
Corporate crime has occurred quite frequently in the past few decades. It seems that every large corporation has skeletons in their closet, more so than others. With many major corporate officials constantly standing against trial, it seems that high profile industries cannot be trusted by the public. This also applies to our very own trusted banks. JP Morgan Chase a trusted financial institution has included itself on the list of corporate crimes. These crimes include but are not limited to rigging bids for personal investments, home insurance fraud, and overcharging the military veterans. As a result, Chase illegally pocketed millions of dollars from taking advantage of their clients. What makes this case very intriguing is that Chase is one of the top banks in America. Their clients put great trust in them to protect their life savings and come to find out they trusted crooks with their finances.…
I believe Wells Fargo unethical banking behavior is the most outrageous practice I have heard of and they may not be the only ones. Their unethical behavior of opening secret accounts for their customer without their consent violate the consumer financial protection act. As a result of this violation, they will be fine millions of dollars as punishment for the behavior. According to Glazer, 2017), illegal activity was widespread across many Wells Fargo locations and was extensive over a few years. They have terminated. Trust…
But over the past few months, the famous Wells Fargo name has been hurt by a scandal. Wells Fargo has created about 2 million fake bank and credit accounts between 2011 and 2015. With the banks nervous response in front of Congress, and disturbing stories of mistreated workers, it has only added fuel to the fire. Now there is talk that the scandal has put serious damage on the Wells Fargo name. Negative attitude towards the company has risen to 52% from 15% before the rumor started, according to a survey conducted last week of 1,500 bank customers.…
The movie “Inside Job” was a very controversial movie. It talked about the financial crisis and how it affected everyone. Personally, it made me angry. All of the big companies such as Goldman Sachs, Citi Bank, Meryl Lynch, and many more, performed unethical activities. They went behind their customers back to bet against them just to make more money, and the statistics don’t lie. From 1978 to 2008 a banker’s regular salary went from $47,000 a year all the way to $100,000, which is a pretty big increase. Inside Job talks about how that happened and the events that led to the financial crisis.…
We all know that bad things can happen to good people. And so it goes with corporations. Wells Fargo has been such a good company this is very sadden about what had happen. Although it deserves to be castigated for the outrageous actions of its employees, managers and executives, we should resist painting the institution itself with too broad of a brush. As Congress and the media focus national attention on the scandal, we should not lose sight of the company's many…
The New York Times article by Reuters, reported that Wells Fargo, who ranks as one of the third largest banks in America is in hot water once again for scandalous misrepresentation of terms and policy arbitrations concerning insider fake bank accounts that were created by previous Wells Fargo employees that were recently fired. The problems exist within the written rules of the documents. Apparently, when the customers opened their “real” accounts, the employees opened fake accounts under their names. The problems stem from the disagreement of fairness in differences of opinion between the bank and its customers because of the…
With pressure to speak up coming from many different places, Wells Fargo CEO John Stumpf finally gave his thoughts on why illegal practices were happening within his company. His response? It was the employees’ fault. He reiterated that efforts had been made to stop the behavior, and that there were no incentives to do bad things. However, the bank ended up removing branch-level sales goals that encouraged employees to cross-sell products to consumers. This practice was the reason for the controversy and why so many fake accounts for customers were made. The bank falsified accounts to make more money, which landed them a $185 million fine. Employees were said to have felt pressure to sell the customers more, in order to retain their jobs or…
A patient may receive radiation therapy before, during, or after surgery. Some patients may receive radiation therapy alone, without surgery or other treatments. Some patients may receive radiation therapy and chemotherapy at the same time. The timing of radiation therapy depends on the type of cancer being treated and the goal of treatment (cure or palliation).…