There is nothing in our culture, nothing in our vision and values that would support that. It’s just the opposite.
Advertisement
I speak here of the cataclysmic revelations at Wells Fargo Bank, now known to have been gaming the system via the “sandbagging” and “pinning” and “bundling” of customers and their accounts, actions that recall such sleight-of-hand language as channel stuffing and cookie jar reserves.
Of more than 5,300 staffers cut in recent years for opening unwanted accounts, about 10 percent represented branch managers or more senior staffers, Shrewsberry said in response to a question at the event. “Of 100,000, a vast majority do the right thing”, he said.
In fact, that same year, in a presentation to investors, Tolstedt and other executives touted the bank’s “expertise” in selling multiple products, which was immensely profitable for the bank. “That is still 1,000 too many”. It’s the first time in over three years Wells Fargo hasn’t been able to call itself America’s most valuable bank.
The Fortune article seemed to hit a nerve: One day later, Wells Fargo announced it will eliminate all product sales goals in retail banking, as of the start of 2017.
Opening deposit accounts and transferring funds without authorization: According to the bank’s own analysis, employees opened roughly 1.5 million deposit accounts that may not have been authorized by consumers. The announcement of next Tuesday’s hearing came hours after Warren and four other Democratic senators demanded a chance to probe the bank’s aggressive sales tactics.
“This is like McDonald’s saying that now there is “real meat” in chicken nuggets”.
“It is hard to believe a large-scale, coordinated [scheme] like this took place without knowledge of some higher ups”, Menendez said in an interview.
Prosecutors are also focusing on whether there was willful blindness to sales practices on the part of executives at the bank, these people said.
“Spurred” is a little mild, considering that CNNMoney reports that a “pressure-cooker environment” at Wells Fargo resulted in employees engaging “in all kinds of sordid practices”.
The bank will pay $35 million to the Office of the Comptroller of the Currency and $50 million to the City and County of Los Angeles.
So who’s to blame? Thousands of employees were fired for this type of conduct.
The Senate Banking Committee and Sen.
“Our objective has always been and continues to be to meet our customers’ financial needs and drive customer satisfaction”, said Wells Fargo chief executive John Stumpf.
All this while Wells Fargo was simultaneously shoving social issues down consumers’ throats, something they’ve done for years.
Wells Fargo is the biggest private mortgage lender in the United States and has been the largest bank by market capitalisation.
Windsor-based SS&C Technologies Holding Inc.is acquiring Wells Fargo Global Fund Services (GFS), the company announced Wednesday.
Advertisement
“This ought to be a moment when people stop and remember how risky the system is when you don’t have the proper protections in place”, Lew said at the Delivering Alpha conference, hosted by CNBC and Institutional Investor magazine. Buffett has remained silent about the controversy thus far.
