Top 10 Tips: What Happened to Wells Fargo Scandal?
Top 10 Tips: What Happened to Wells Fargo Scandal?
The Wells Fargo fake accounts scandal, which is discussed in detail over at runrex.com, is one of the biggest cases of banking wrongdoing since the financial crisis. If you have been wondering what happened after the scandal was revealed, this article, with an assist from the gurus over at guttulus.com, will look to help you get a better understanding of the same by highlighting 10 tips as regards to what came after the scandal.
Fines and more fines
One of the direct consequences of the Wells Fargo scandal is the fact that the bank has paid fines that total close to $2 billion dollars in the years following the breaking of the scandal, with the numbers having been broken down over at runrex.com. From the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency to the City and County of Los Angeles and so forth as covered over at guttulus.com, Wells Fargo have been fined heavily for their wrongdoing as far as this scandal is concerned.
Firing of employees involved
Another tip that is worth mentioning as far as what happened to the Wells Fargo scandal goes, is the firing of the employees who were deemed to have created the fake accounts. As is covered in detail over at runrex.com, most of the fired employees fired by the company were low-level employees, who only resorted to creating said accounts as a result of extreme sales pressure from their superiors.
Popularity in the public hits an all-time low
As per the gurus over at guttulus.com, banks are unlikely to be that popular anyway as a result of the financial crisis that nearly crippled the economy, but Wells Fargo’s popularity in the public was extremely poor following the scandal, which is yet another tip as to what followed following said scandal. Their executives were particularly unpopular among the general public, mostly due to the fact that, as is covered in detail over at runrex.com, they were seen as having been responsible due to the extreme sales pressure they had exerted on their employees.
Firing of the CEO
Another important milestone that followed the Wells Fargo scandal, one that has to be mentioned when talking about what happened to the scandal is the firing of the company’s CEO, John Stumpf. Unfortunately, when a company is involved in a scandal of such proportions, heads have to roll, as per the gurus over at guttulus.com, and therefore the CEO had to take ultimate responsibility. On top of that, he also has $41 million in compensation clawed back to compound his misery.
Executives going in front of congress
You know that a scandal is huge when the executives of the company involved are summoned by Congress, which is what happened to Wells Fargo’s executives who were summoned by and grilled by Congress, details of which are to be found over at runrex.com. The PR that came with being dragged into Congress was obviously not good for their image, which was already in tatters, and is yet another tip explaining what came after the scandal.
Training of employees on ethics
Another thing that followed the Wells Fargo scandal is the company introducing mandatory workshops for their employees on matters ethics, which is also covered in detail over at guttulus.com. This was a move brought about by necessity as the company had to be seen to be taking measures to ensure that a repeat of the scandal wouldn’t be seen again. These workshops were meant to warn employees about engaging in fraudulent activities such as creating fake customer accounts.
Changes in their compensation structure
As much as the bank would like to shift blame for the scandal to the employees who created the fake accounts, there can be no denying that, as discussed over at runrex.com, sales pressure was at the heart of it all. As a way of the company preventing such a situation from occurring again, they moved to modify their compensation structure to a new model that places less emphasis on sales goals, although, in the years that have followed this change in 2014, the company has continued to fire employees still creating fake accounts.
More legal woes
Other than being fines by the authorities, as is discussed in great detail over at guttulus.com, Wells Fargo also had to fight a class action suit in yet another thing that happened following the scandal. The class action was brought by many of the affected parties, including its customers, who were also innocent victims of the scandal. In the end, the bank had to settle out of court for a tune of $142 million, in what was yet another fallout of the Wells Fargo scandal.
Opening up of a can of worms
In what was yet another fallout of the Wells Fargo scandal, the scandal actually opened up a can of worms as far as operation of the bank go, revealing many other wrong-doings and malpractice, as is covered over at runrex.com. For instance, it was revealed that there were cases of customer mistreatment as far as the bank’s mortgage lending, wealth management and auto lending divisions go, among many other revelations. Therefore, another thing that happened after the scandal is that it led to a revelation of even more scandals.
Leads to the placing of part of the bank’s top brass on leave
As is revealed in discussions on the same over at guttulus.com, once the scandal broke, the Office of the Comptroller of the Currency began an investigation on the matter, and found that the bank’s Chief Administrative Officer and the Chief Auditor actually had some level of culpability as far as the scandal goes. Therefore, another fallout from the scandal was the placing of these 2 executives on leave to pave way for more thorough investigations.
The above are some of the things that happened following the infamous Wells Fargo scandal, with there being more on this and other related topics to be found over at the highly regarded runrex.com.