Wells Fargo

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

The L.A. Times reported the unethical business practices in 2013, and aided in exposing the fraud. This report directed to a 2015 lawsuit against Wells Fargo by the city of Los Angeles. They were fined $185 million and Wells Fargo terminated 5,300 employees, nearly 1% of the U.S. workforce. Therefore, the federal regulators got involved and this resulted in WF announcing they were going to pay the $185 million fine. The purpose of the announcement was the bank’s executives wished to have the matter behind them. However, due to the firing of the employees and creating the fake accounts, it caused a public uproar and caught the government officials attention (the U.S. Senator Elizabeth Warren and U.S. Treasure Secretary Jack Law). They scolded Wells Fargo for the misconduct and asked John Stumpf to resign. Though, Stump wanted to continue and lead the team to success. In addition, a former consumer banking chief, Carrie Tolstedt, who had resigned during the summer and reportedly collected $125 million. She ran the unit that was responsible for the millions of fake accounts may be have million dollars in penalties. However, since she decided to retire in July, there are no indication that she will face any

The focus was to sell multiple products to customers daily. The goals they are intending to reach will take some time. Gaining trust from the customers and the organizations would take some time. Wells Fargo practiced poor business ethics, to have themselves recognized as the #1 bank and gain a huge profit. The aftermath, their concentration will be any open accounts will require a signature on the applications, elimination of the sales goals, every customer will receive an email of any opened accounts, and employees may call the bank ethic’s hotline to report any