Wells Fargo : An American International Banking And Financial Services Holding Company

Wells Fargo : An American International Banking And Financial Services Holding Company

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Wells Fargo, is an American International banking and financial services holding company. It provides banking, mortgage, investing, credit card, insurance, and consumer and commercial financial services. In July 2015, Wells Fargo became the world’s largest bank with 8,700 branches and 13,000 ATMs. In addition, it was the second largest bank in deposits, home mortgage services, and debit cards. Wells Fargo’s main office is located in Sioux Falls, ND., and was recognized as one of the, “Big Four Banks”, which included JPMorgan Chase, Bank of America, and Citigroup.
It was discovered from May 2011 to July 2015, Wells Fargo practiced a series of unsanctioned cross-selling, such as opening credit cards and the creation of 2 million counterfeit accounts by thousands of employees. There were 556,443 credit card applications submitted by the employees without the customer’s approval or knowledge. About 14,000 of these accounts acquired over $400,000 in fee which consisted annual fees, interest charges, and over-draft protection fees. Some employees even went as far as creating fake email addresses and personal identification numbers. In addition, the customers were charged for insufficient funds for accounts they were unaware of, and these charges were charged to their original account. The 1.5 million unauthorized deposit accounts and the 500,000 credit card applications accumulated an estimation of $2.6 million in fees for Wells Fargo. The CEO, John Stumpf’s motto, “Eight is Great”, implicating that the customers should have at least eight of Wells Fargo’s products. This caused a burden to the employees and was the reason to the misconduct was their focal point of sustaining the sales goal and to produce financial reward accompanyin...

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...anager would coach us over and over on how to sell products, or stood by us during a transaction and whisper what to say or sell. There are many products to offer to the customers, and some of these products the customer did not understand. The small town I resided in at the time consisted of elderlies that did not speak or understand the English language. Some understood the concept of overdraft charges, but others didn’t which caused a high negative balance to their accounts due the various products that were charged to their accounts. Nonetheless, the more products that were offered and were accepted, the pressure lessened from the bank manager. The pressure of maintaining the high expectations from the manager was very stressful. If an employee could not “get on the board”, they were fired for low performance or insubordination. This caused a high turnover rate.

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