What happened at Wells Fargo with regard to past activities that led to

this major scandal?

Most Americans have assumed sacrosanct bank accounts of theirs. But with the major
scandal at Wells Fargo, angry employees are shedding light on the alarming pressure
that allegedly led local bankers to defraud perhaps over a million customers. Wells
Fargo is one of the biggest scandals in business history. The past activities that led to
the big scandals are that lower-level employees did not meet their targets for opening
bank accounts. This scandal is the result of poor working environment , poor
leadership from the top and setting unattainable and undefined targets like activities.

From this case, I find that managers and executives in the past are making quotas for
employees that they need to open as many accounts as they can. If they don't fulfill
the requirements they would lose their job. The alleged fraud was revealed when the
Consumer Financial Protection Bureau (CFPB), the Los Angeles City Attorney and the
Office of the Currency Comptroller (OCC) fined the bank $185 million, claiming that
between May 2011 and July 2015 more than 2 million bank accounts or credit cards
were opened or applied for without the knowledge or consent of the customers.
Identify and use relevant concepts from this chapter as well as your

m
own thoughts and analysis to diagnose the scandal at Wells Fargo. How

er as
could such a scandal have occurred in the first place? Who and what

co
was at fault?

eH w
My thoughts regarding the scandal are that it should never have happened. Monthly
audits should have been done to make sure that everything was legit. This way, if

o.
anything was happening illegally then it would have been stopped or I hope it would
rs e
have been stopped. If fraud were detected, then it would have gone through the
ou urc
business' proper channels and reprimanded whoever was behind it.
"Blame is put on the marketing incentive program of the bank, which sets exceedingly
high sales goals for employees to cross-sell additional banking goods to current
o

customers, whether or not the customers needed them or desired them." .. Cross-
selling goods is not a new phenomenon, but if workers feel obligated to sell more than
aC s

they need, and are encouraged to do so, it is no wonder that illegal products are being
vi y re

used.
In the first place, I think the poor leadership and the outrageous aims for employees
lead to this scandal. The management was at fault because they put enormous
pressure on opening accounts and making illogical targets. The employees had a
ed d

great deal of fear and felt threatened if they failed to achieve those objectives. If they
ar stu

felt like that, they would have looked elsewhere for jobs.
Suggest some solution paths the company might consider, using
knowledge from this chapter and your own thoughts/research, to avoid
such a scandal from reoccurring.
is

Wells Fargo should have a Code of Conduct and Manual of Ethics in place. Which
prohibits any illegal activity from top to bottom line executives. Next, they will arrive at
Th

a fair quota which can be met. This means there will be no criminal activity and the
workers won't leave the company. They should, finally, have support from all angles.
From the consumers to the top executives. Customers will place confidence in their
ability to do your job properly. They shouldn’t feel pressured from anyone on doing
sh

their job.

This study source was downloaded by 100000837398577 from CourseHero.com on 11-24-2021 08:40:26 GMT -06:00

https://www.coursehero.com/file/62515643/6docx/
Powered by TCPDF (www.tcpdf.org)