Wells Fargo, Banking Culture and What Could Be Next

Sep 17, 2016, 00:40
Wells Fargo, Banking Culture and What Could Be Next

A similar issue regarding the excessive pressure exerted by the bank over its employees was mentioned in the lawsuit filed against the bank in May past year.

The fine issued to Wells Fargo will pay $100 million to the Consumer Financial Protection Bureau, $50 million to the city and county of Los Angeles, and $35 million to the federal Office of the Comptroller of the Currency.

The House Financial Services Committee is opening a formal investigation into wrongdoing at Wells Fargo. I wish it would be zero, but if they're not going to do the thing that we ask them to do-put customers first, honor our vision and values-I don't want them here, he said. "Customers must be able to trust their banks".

The federal investigation also comes a year after the Justice Department said it would more aggressively pursue cases against individual company executives, not just corporations. The bank's own analysis determined that employees may have opened 2 million deposit and credit card accounts without consumers' consent. The employees created phony email addresses to enroll existing customers in online-banking services, for example, and issued them debit cards they didn't request.

"Today's action should serve notice to the entire industry", said Richard Cordray, Director of CFPB.

"We need answers as to how this happened and why this happened". After the scheme had been exposed Wells Fargo fired 5,300 of its workers for their improper sales push.

Over the period of the alleged misconduct - between May 2011 and July 2015 - at least 5,300 bank employees were fired, the bank confirmed to ABC News.

Democratic lawmakers with the House Committee said they would be asking questions in detail about the impact of Wells Fargo's conduct on customers and investors in its shares, particularly pension funds. The bank hired an outside firm that looked for potentially bogus accounts, a process that was finalized before the settlements were announced. The bank says it has refunded to customers $2.6 million in fees charged for products that were sold without authorization.

BOSTON, Sept 15 Activist shareholders of Well Fargo & Co said on Thursday they had filed resolutions raising the prospect of deep changes at the bank in the wake of a fake accounts scandal that has knocked billions of dollars off the institution's market capitalization. This was seen as part of the culture at the bank, which encouraged employees to open as many accounts as possible.

This week - less than a week after the CFPB announcement - one of our employees received this notice: "During our usual security enhancement protocol, we observed multiple login attempt error (sic) while login (sic) to your online account".

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