1
Aakriti Lakshmanan
08/05/2016
Mr.Havner
Current Event 2 Wells Fargo & Company is a very diverse financial service company. It is community based, and has 1.9 trillion dollars in assets. Wells Fargo provides banking, insurance, mortgage and commercial financial services through many different outlets, including 8,600 locations and 13,000 ATMs. It was founded in 1852, and has 70 million customers, attended to by more than 267,000 employees in many different countries. In the second quarter of 2016, Wells Fargo was ranked third in assets. It was also named "Most Admired" among the largest banks in the world, and "Best US Bank" by the Banker magazine. They donated 281.3 million dollars to 16,300 different nonprofit organizations in 2015, and
…show more content…
Almost all customers that enter a bank expect to hear questions like "Would you also like to get a mortgage or an auto loan? Would you like to open another account? A savings account?" Most of the time, people say no, and this can hurt the bank 's infrastructure, especially since the number of people that physically go to the bank is gradually decreasing. In order to make sure enough accounts are created, branch managers will sometimes set goals for the employees. Since the number of products sold affects the salary of the branch manager, their goals may sometimes be very demanding. Most of the time, the employees are not able to reach that goal while sticking with Wells Fargo 's values: ethics, what 's right for …show more content…
They did this by signing up customers for things they did not approve, like savings accounts and debit cards and other types of banking products and services. If a person happened to notice what was going on, Wells Fargo said sorry, and fixed it. Most of the time, the person never found out. This has been happening since 2011. Wells Fargo has fired more than 5,200 employees because of this scandal, and has been fined 185 billion dollars. The employees took funds from customers ' existing accounts and put them into the fake accounts without them knowing. The CFPB said this practice was "widespread" and made customers pay for the extra account, and any other problems that came with it, like overdraft fees. Wells Fargo employees also created 565,443 fake credit card accounts without their knowledge or consent. Many customers who had unauthorized credit cards had to
Employees were using the cross-selling which is a concept of attempting to sell multiple products to consumers. This concept led to fraudulent actions, in fact employees were encouraged to order credit cards for pre-approved customers without their consent, and to use their own contact information when filling out requests to prevent customers from discovering the fraud. " The Wells Fargo scandal was far different. Instead of a select few doing bad things, the unethical behavior was widespread at the bank, with thousands of employees engaged in secretly creating new bank and credit-card accounts for customers without their knowledge, resulting in overdraft and other fees." (Kouchaki, 2016). According to the Los Angeles City Attorney, employees were opening and funding accounts without customers' permission or knowledge in order to "satisfy sales goals and earn financial rewards under the bank's incentive-compensation program." This means that the board members of the bank were aware of that it wasn't by the employees' own wills. In fact, they were pressured by aggressive goals and performance which led them to immoral behaviors. Facing this problem, Wells Fargo bank had to take some measures to avoid bankruptcy, losing customers, or loosing brand
on September 8, 2016 Wells Fargo’s unethical behavior was reveal when the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency fined Wells Fargo $185 million because over 2 million credit card and bank accounts were fraudulently open or applied for in customer names without their knowledge (Blake, 2016).
In addition to banks, Wells Fargo also owns the world's largest stagecoach empire and history museums. Wells Fargo has offices in 36 countries
In March of 1852, Henry Wells and William Fargo established the well-known bank, Wells Fargo. Originating in the West, Wells Fargo offered banking services, such as buying and selling paper banks drafts, which served as a representation of gold during a prime time in the economy. They would also extend a delivery service of customer’s valuables, branding their corporate symbol of a six-horse stagecoach. “From the Gold Rush to the early 20th Century, through prosperity, depression and war, Wells Fargo earned a reputation of trust due to its attention and loyalty to customers.” (“History of Wells Fargo”) With the help of the transcontinental railroad, Wells Fargo exploded across the nation throughout the years and still is considered one of the
It is proper to present a business definition of merger as it found on legal reference with the ultimate goal in the pursuing of an explanation on which this paper intents to present. A merger in accordance with the textbook is legally defined as a contractual and statuary process in which the (surviving corporation) acquires all the assets and liabilities of another corporation (the merged corporation). The definition go even farther to involve and clarify about what happen to shares by explaining the following; “the shareholders of the merged corporation either are paid for their share or receive the shares of the surviving corporation”. But in simple terms is my attempt to define as the product or birth of a corporation on which typically extends its operation by combining with another corporation. So from two on existence corporations in the process it gets absorbed into becomes one entity. The legal definition also implied more than meet the eye. The terms contractual and statuary, it implied a process on which contracts and statuary measures emerge as measures to regulate, standardized, governing or simply at times may complicate whole process. These terms provide an explicit umbrella and it becomes as part of the agreement formulating or promoting a case for contracts to be precedent, enforced or regulated in a now or in the future under a court of law under the Contract Business Law Statue of Practice. As for what happens to the shares of the involved corporations no more explanation is needed as the already actions mentioned clearly stated of the expectations of a merge’s share involvement.
Wells Fargo account fraud scandal One of the most recent white-collar crimes involved Wells Fargo, a banking and financial services provider. In 2016, San Francisco-based bank Wells Fargo (WFC) employees secretly created millions of unauthorized bank and credit card accounts without permission of their customers. Opening about 1.5 million fraudulent deposit accounts and submitting 565,443 credit card applications allowed Wells Fargo employees to boost their sales targets and receive bonuses. Consequently, customers were wrongly charged fees for accounts they did not know existed. In this business crime scenario, Wells Fargo is involved in paying $185 million in fines and refunding $5 million to affected customers.
For Chase bank the mission and vision should always be clear to their customers. "At JPMorgan Ch...
As Wells Fargo convicted all the requirements of fraud they are involved to the business crime called fraud, they are liable to their fraud crime. There was a false statement which respectively conducted to the injury to the alleged victim as a result. Wells Fargo has been ordered to pay $185 million in fines, but that's a pittance compared with the $5.6 billion the bank earned in just the second quarter of this year. Meanwhile, the bank's victims weren't just nickel-and-dimed with overdraft and maintenance fees. Many of them took "significant hits" to their credit scores for not staying current on accounts they did not even know about. They will likely have difficulty securing home and car loans at reasonable rates for years to come, simply because their bank decided to defraud
Wells Fargo provides international banking for several reasons. Wells Fargo Bank has recognized the potential of providing more choices for consumer and business customers.
In the late 1800s' economy there were many Americans who considered themselves to be business affiliated, but really didn't understand the full meaning of a business or knowing any financial obligations within a business. However, there was one peculiar man John Pierpont Morgan also know as J.P. Morgan who stood out to be a triumphant entrepreneur of many Americans in the late 1800s U.S. Economy.
When American Express first came about, it would fit the assumed picture of a typical call center: a tall building filled with thousands of service agents aligned on every floor. For years, a typical work-day for each employee consisted of repeated, recorded, scripted, and timed phone conversations. Today, though, it is a whole new world. Today, no two conversations are the same. American Express finally realized that opening the gates and allowing employees be themselves would sell more product than ever before.
The Wells Fargo scandal started in 2016 when it came to light that starting back in 2011 employees created over 1.5 million fraudulent bank
It is the 10th largest nation bank, and it offers a similar product line to what SunTrust bank offers. Capital One Financial (COF): The bank almost similar to the size of SunTrust Bank and US Bancorp, however, it operates in a credit card business. Regions Financial Corporation (RF): it is quietly similar to SunTrust Bank since it is mainly focused on the Southeast in the US and provides similar product line. National banks BB&T (BBT): Bank of America
John Pierpont Morgan is considered one of the founding fathers of the modern United States economy. He was an industrial genius that is accredited with the founding of many companies including General Electric and AT&T. However, Pierpont is looked upon as a saint and demon the same. He received a honorary degree from Harvard university that read: "Public citizen, patron of literature and art, prince among merchants, who by his skill, wisdom and courage, has twice in times of stress repelled a national danger of financial panic." But Robert LaFollette, the Wisconsin progressive, saw him as "a beefy, red-faced thick-necked financial bully, drunk with wealth and power." Despite conflicting opinion on his persona, his influence and character shaped the business world more so than any other person at the turn of the century. Morgan was a banker, railroad czar, industrialist, financier, philanthropist, yachtsman, and ladies' man. He was king to a handful of millionaire barons who controlled the country's wealth in an era of little government regulation.
Initially the bank’s core banking system was product oriented, but the need of the hour was to develop a customer oriented system, because the challenge is to build customer loyalty, cross sell, and enhance repeat business.