Yes, my friends…you read that right. 5,300 employees at Wells Fargo Bank had to be terminated for going rogue and signing up over 1.5 million customers for credit cards and other accounts that customers had not requested.
“Going rogue?” That would have to be the case given no managers or senior leaders were aware of or held accountable for this. It’s the most profound example of “going rogue” I’ve ever witnessed.
The top executive in charge is going to retire with a package of $125,000,000. Nice work if you can get it!
Wells Fargo was fined $185 million which amounts to about $120 per fraudulently-opened account. My, my–a mere “cost of doing business.”
The Justice Department is going to look into this, so, it’s not over. Wells Fargo’s leadership doesn’t pass the giggle test on their explanation that the employees did this independently.
Isn’t it about time that white collar criminals learn first hand that white collar crime doesn’t pay? Isn’t it important that a corporate culture be intolerant of fraud against customers?
Thought for the week:
“Technology needs to take away administrative burdens to free up healing hands.” – Shane Waslaski, CEO, Intelligent In Sites (healthcare operational intelligence)
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2 Comments
w. mark · September 25, 2016 at 10:51 pm
I do not believe $185mm is enough compensation for the Clients that suffered the consequences of an inexcusable crime. Esp. when the CEO walks away with $125mm.
Where’s the logic in this crime? Do you agree?
~wm
Dave Gardner · September 26, 2016 at 8:08 am
The $185mm is the fine paid to the government. None of this money is to reimburse the victims of this fraud. That will require a class-action lawsuit against WFB.