Wells Fargo fined $185M for dubious account openings

Discussion in 'Wall St. News' started by dealmaker, Sep 9, 2016.

  1. dealmaker

    dealmaker

    Regulators say bank employees, striving to hit sales goals,opened more than 2 milliondeposit and credit-card accounts that customers might not have known about. Wells Fargo fired 5,300 workers in addition to agreeing to pay the largest fine ever imposed by the Consumer Financial Protection Bureau.(Bloomberg)
     
  2. My cousin worked there, spoke to him last night about this:

    • It appears Wells Fargo designed a system to create fear in the employees- Branch Banking Management rulled with an iron fist
    • 3 "Beat up" conference calls a day Morning, Lunch, then at the end of the day
    • Each Retail Banker was required to sell 5 accounts a day, remember these branches are mostly empty these days
    • They would barely get consent from the customer and simply open the accounts to get "credit" bonus of maybe 3k per a quarter if you were "good"
    • Fired if you suck at scamming people
    • He could not understand why they were supposed to have customers have 3 checking accounts and 4 savings accounts, his only conclusion was that it would confuse the customer and they would overdraw the account and create fee revenue for Wells Fargo
    • Upper Management new this was going on but looked the other way, and just scared these basic branch employees
    That was the two cents I got from him, really a terrible place to work, low pay, huge sales goals, little pay if you hit the goals. Customers got screwed and confused.
     
    clacy and dealmaker like this.
  3. It kind of baffles me...how a big, old, solid institution like Wells Fargo...could be operating like a boiler room :confused:o_O
     
  4. Baron

    Baron ET Founder

    I went to open a checking account at WF a few years ago, and it was an awkward experience to say the least. The salesperson kept insisting that I open a savings and a checking account, despite me telling him repeatedly that I only wanted a checking account. So I literally left there with two accounts because I was told "there's no other way".
     
    Last edited: Sep 9, 2016
    Cprice253 and kmiklas like this.
  5. S2007S

    S2007S

    so Fu$king disgusting these banks are...amazing what goes on at these financial institutions.....how many banks in the last 10 years have been fined for doing something outrageous and yet they still claim they did no wrong and stay in business as if nothing ever happened.......I can just imagine what other things are happening today that we won't hear about for another 2-3-5 years, its amazing how they get away with these practices and then they claim how they are one with the customer, all liars and deceiving fools... That goes for the likes of big pharma as well and their dirty practices...it's all corporate fu$king greed. That's all it is...
     
    lovethetrade likes this.
  6. S2007S

    S2007S

    Exactly... That's what I cannot comprehend myself.
     
  7. Boiler Room with NO money to be made, they ruled on fear. It wasn't greed driven by the "bankers" who sold the stupid little checking accounts. They barely made any money selling the stuff, they were just scared to lose their jobs.
     
  8. That's crazy and there are no repercussions for them. Bernie was right we should do something about TBTF banks!
     
  9. S2007S

    S2007S


    I heard they all ended up losing their jobs....that's what one article said
     
  10. Once enough complaints came and the verdict was in, it was easy to trace the account opened to the "banker" who opened it and simply fire them. These "bankers" were glorified tellers making 45k a year with a potential of 60k with bonuses.

    My guess is, there were complaints for years, but once the authorities came to town and slapped the fine, they had to fire their bankers who opened these accounts. My cousin said it was so widespread.

    In my opinion, it really didn't hurt anyone, then environment for the customer was just very nickle and dime oriented due to the confusion of having so many accounts.

    IN other words, Wells Fargo... "Baffled their clients with BULL SHEET"
     
    #10     Sep 9, 2016