Summary: Wells Fargo exec led a unit of employees who made 2 million fake accounts. Because of these fake bank and credit card accounts these employees were getting bonuses and keeping quiet about it. They did this because of being pressured into selling 8 financial products per customer (cross-selling). This lead to fake email accounts as well.
Analysis/Synthesis: Hearing that such a big bank company like Wells Fargo being caught like this is shocking in the least. Carrie Tolstedt had made so much money off of the growth in customers but does it really count if the accounts aren't real? Tolstedt has dug a hole for the company and even retired after 27 years of work, just in time for that huge sum of money she's getting. Similar to the Enron scandal, at Enron they were selling products for more than they were actually worth (they were overstated). Before it's collapse they pulled out their stocks and tried to sell them before it ended. People will always try to find a way to fool customers and get more money out of them.
Sources:
http://money.cnn.com/2016/09/12/investing/wells-fargo-fake-accounts-exec-payday/index.html
http://www.cnn.com/2013/07/02/us/enron-fast-facts/
I heard my mother talking about this! It's unbelievable that people would exploit other's trust for money for their own personal benefit. I can understand that sometimes a work environment can apply lots of pressure, but when it leads to you stealing and lying, that environment is obviously toxic and its time for you to quit.
ReplyDeleteThis is the ultimate betrayal of trust. I cannot imagine what the customers who were sold fake accounts must be going through. It is disgusting that a company that deals with a very private and important part of a person's life would scam their customers. It was all fine for Wells Fargo because they were making extra cash, but now they will probably hurt more than the extra money was worth. They will probably lose a lot of business, and go through expensive legal issues.
ReplyDeleteI did my current events similar to this one and it is unbelievable how far people are willing to go to get a raise.
ReplyDeleteThat's insane... Lately the security of money has decreased to the point where Americans have to worry when they get gas, swipe their cards, or put money in a bank. Authorities need to get a handle on these situations immediatly.
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