Wells Fargo Pros And Cons

Founded in March of 1852, by Henry Wells and William Fargo, Wells Fargo and Co. offered new banking and express opportunities to the West Coast (“History of Wells Fargo”). Today, Wells Fargo is considered one of the four largest banks in America, and does business with one in three households (“Wells Fargo”). MORE INFO ABOUT SUB HEADINGS TO TIE INTO THESIS STATEMENT. In order to regain the trust of their customers and to build up their brand name, Wells Fargo SHOULD DO SOMETHING.

Methods The information that was used for this report was gathered from the University of Hawaii at Hilo’s Library Database. Mainly LexisNexis Academic and two EBSCO websites, Business Source Complete, and Regional Business News. Wells Fargo’s website also provided

They violated the trust of its customers and deceived and abused them. The bank and its affected personnel are paying and will continue to pay, the legal price for such flagrant wrongdoing, including perhaps, imprisonment of certain personnel (Cavico Mujtaba 17). According to Frank J. Cavico and Bahaudin G. Mujtaba, the authors of “Wells Fargo’s Fake Accounts Scandal and its Legal and Ethical Implications for Management,” the lesson to be learned from this scandal is “that if an organization sets unrealistic sales goals and then ties the employees’ compensation and their jobs to meeting these goals, then unethical and illegal behavior is likely to occur, harming the organization and its stakeholders” (Cavico Mujtaba

Those agreements have been upheld in court, even though the consumers agreeing to them probably had no idea that they would apply to fraudulent accounts opened with forged signatures. Consumers could file for arbitration individually, but studies have found that consumers almost never bother to file arbitration claims for less than $1,000 (Sovern). Many Wells customers probably suffered damages of less than $1,000. The CFPB has proposed a regulation that would bar banks from preventing consumers from joining class actions, but congressional Republicans also want to take away from the CFPB the power to issue that regulation (Sovern). If successful in limiting the CFPB’s powers, it is hard to imagine what would restrain financial institutions from taking advantage of consumers in less visible matters. Regulators may not be able to restrain them, people wouldn’t sue, and the market wouldn’t be able to impose enough discipline