Wells Fargo is Committing Fraud- Abbey Winiger

SUMMARY- On September 8th most Americans were shocked to find out that one of the most trusting names in banking Wells Fargo; is guilty for for secretly creating as many as 2 million unauthorized accounts since 2011. After this scandal was released the CEO of Wells Fargo John Stumpf fired 5,300 employees who were thought to be involved in creating this false accounts. This scam has ripped off customers of $2.4 million and has ruined many credit scores. While the Wells Fargo stock rose $30 a share, meaning John Stumpf has made $200 million off of this affair. Although admitting to be responsible, Stumpf has not returned any of the money he has gained through this process. Lawyer Elizabeth Warren questions Stumpf by saying "Since this massive years long scam came to light, you have you have said repeatedly "I am accountable. " But what have you actually done to hold yourself accountable? Have you resigned as CEO of We;ls Fargo?" To this question John Stumpf stammered to come up with an answer, but later released that he has no plans to resign. 

ANALYSIS/SYNTHESIS- I think Wells Fargo is totally to blame in this situation. It's crazy to see how this scam has been going on for 5 years and it was just released. I agree with Elizabeth Warren in that the CEO needs to resign. Prior to reading this article I had heard about how customers were being scammed by Wells Fargo. I think this story has a negative impact because it scammed many people who trusted their bank. It is absolutely ridiculous that John Stumpf has earned over 20 million by falsifying records and causing his customers much turmoil. This story reminds me of the Enron Scandal which was an energy company that by the use of accounting loopholes, special purpose entities, and poor financial reporting, were able to hide billions of dollars in debt causing a high stock price like Wells Fargo. 


http://money.cnn.com/2016/10/01/investing/wells-fargo-fake-account-scandal-september-2016/index.html