Financial Analysis: The Wells Fargo Scandal

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Wells Fargo, which be seated at the 4th largest bank in America with $1.75 Trillion in assets at the time, had a great wealth of capital to distribute to its public relation division. A persistent interest in maintaining a good public belief among both customers and stockholders, it could be anticipated that timely and cautious actions would be taken in light of a scandal. Wells Fargo’s response to the scandal was exactly that, quick, orderly and official. However, despite any preparation a company could devise, it is impossible to predict the scope and impact a scandal such as this could enforce more. To better understand what needed to be done to for restoration of their bank’s function and reputation, The Wells Fargo conducted and did research …show more content…

The survey was a quantitative collection of views on the company before and after the disaster happens. The research was carried out through online reviewing 1,000 Wells Fargo primary customers and 500 customers from other Top 10 U.S.Banks. The study covered customer views on the bank’s reputation, trends on customers transferring from the bank, estimated financial loss and how the other banks could take benefit from scandal. This survey would act as a secondary research source for the bank and could have been used to compare with similar surveys conducted from within the company to form a better outlook on their consumer stakeholders.
• Wells Fargo closely researched would be their firm’s stock market valuations during the crisis & comparison with the competitor banks.
• Well-being and value in the eyes of their stockholders. An assessment of Wells Fargo’s stock listing from the time of the crisis onward was conducted in a quantitative review by CNN money. This review was a content analysis of the company’s stock that showed that Wells Fargo, during the crisis, hits a 31-month-low share price. Due to the crisis & share price drop was reflective of the fear from Wall Street stakeholders that the company’s reputation and potential for profit was at stake. From this information Wells Fargo could also see the impact of their movements on the stockholder in

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