Wells Fargo Should Be Shutdown As A Scam!
It is not very often that I talk about companies that are not business opportunities. Today is the day that I talk about Wells Fargo. Here is my opinion of the Wells Fargo scandal. Wells Fargo has been fined $185 million. They have also been grilled by congress over their abusive treatment of their employees and customers. Wells Fargo had a net income of $23.0 billion in 2015.
Here is what has been reported about the Wells Fargo scam:
Wells Fargo employees secretly opened 2 million unauthorized accounts to hit sales targets and receive bonuses. – Source CFPB Director Richard Cordray
Wells Fargo sales targets were so high that many employees found them impossible to meet, until someone hit upon an ingenious solution: ignore the customers’ wishes, as well as banking law and basic ethics, and open up new accounts even when the clients had asked them not to. In some cases, customers were charged late fees on accounts they hadn’t requested and that they didn’t know they had. – Source Newyorker.com
“When I worked at Wells Fargo, I faced the threat of being fired if I didn’t meet their unreasonable sales quotas every day, and it’s high time that Wells Fargo pays for preying on consumers’ financial livelihoods,” Khalid Taha, a former employee, said in a statement. – Source Bloomberg.com
Wells Fargo has made tens of billions of dollars, and likely hundreds of billions, by employing its aggressive sales targets.
“Everything we do is built on trust. It doesn’t happen with one transaction, in one day on the job or in one quarter. It’s earned relationship by relationship.” The Vision and Values of Wells Fargo – Source Wellsfargo.com
People that contacted the Wells Fargo ethics hotline were fired for reporting these scam tactics.
One former Wells Fargo human resources official even said the bank had a method in place to retaliate against tipsters. He said that Wells Fargo would find ways to fire employees “in retaliation for shining light” on sales issues. It could be as simple as monitoring the employee to find a fault, like showing up a few minutes late on several occasions. – Source Money.cnn.com
Carrie Tolstedt, the divisional senior vice president for community banking, was the person responsible for Wells’s 6,000 branches where the infractions took place. She reported to John G. Stumpf, Chairman and CEO of Wells Fargo. – Source Nytimes.com
Wells Fargo Scam Conclusion
In my opinion, Wells Fargo should not only be fined but shut down as a giant scam. It is time for too big to fail to end. Wells Fargo needs to be made an example of for the rest of the banks that are abusing their employees and customers. At bare minimum the board for Wells Fargo should be replaced and John G. Stumpf and Carrie Tolstedt should serve time in jail. They should receive massive fines as well.
Senator Elizabeth Warren questions Wells Fargo CEO John Stumpf at Banking Committee Hearing:
Here is a list of the top people that are or were involved with Wells Fargo while this scam was happening:
John G. Stumpf, Chairman and CEO
Carrie Tolstedt, Divisional Senior Vice President For Community Banking
-John D. Baker II, business executive (director since 2009); director of FRP Holdings.
–Elaine L. Chao, former secretary of Labor (2011): Ingersoll-Rand, News Corp., Vulcan Materials.
–John S. Chen, technology executive (2006): BlackBerry Ltd. (also CEO), Walt Disney Co.
–Lloyd H. Dean, CEO of Dignity Health (2005): McDonald’s, Navigant Consulting.
–Elizabeth A. Duke, banking executive and ex-Fed governor (January 2015).
–Susan E. Engel, consumer products executive (1998).
–Enrique Hernandez Jr., business executive (2003): Chevron, McDonald’s, Nordstrom.
–Donald M. James, retired executive (2009): Southern Co.
–Cynthia H. Milligan, business school dean, University of Nebraska-Lincoln (1992): Kellogg Co., Raven Industries.
–Federico F. Pena, former secretary of Transportation (2011): Sonic Corp.
–James H. Quigley, former CEO, Deloitte LLP (2013): Hess Corp., Merrimack Pharmaceuticals.
–Stephen W. Sanger, former CEO, General Mills (2003): Pfizer Inc.
–Susan G. Swenson, CEO, Novatel (1998): Harmonic Inc., Novatel Wireless.
–Suzanne M. Vautrinot, cyber security expert (February 2015): Ecolab Inc., Symantec Corp.
– Source Latimes.com