The Rise And Stall Of Wells Fargo
U.S. regulators say Wells Fargo has repeatedly misled and overcharged its customers. These allegations have rocked the 170-year-old bank, which still stands as one of the largest lenders in the U.S. The Federal Reserve continues to uphold an unprecedented cap on the bank's assets in response to the government's findings. These ongoing legal issues have weighed on the bank in recent years, sending numerous employees and executives out the door.
Reports of fraudulent activity in Wells Fargo's sales department first surfaced in 2013. The bank opened at least 3.5 million fraudulent accounts for unwitting customers, according to researchers at the Harvard Business School. This and other issues have led the government to fine the bank repeatedly.
Experts said the government has wide authority to limit Wells Fargo, given the reputation senior management has earned for imposing demanding business goals on its workforce. These lofty goals may have led employees to engage in deceitful and at times allegedly illegal behavior.
In a statement to CNBC, Wells Fargo said the bank is revising its management, risk and control frameworks while changing the company's culture and policies. They said, "there's more work that they must do to rebuild trust, and that they are committed to doing that work."
Watch the video to see how the Wells Fargo scandal positions the bank in 2022.
Wed, 19 Oct 2022 16:54:02 GMT