Wednesday, November 9, 2016

How Wells Fargo’s Problems Flourished in Arizona

A letter sent to Wells Fargo management by an anonymous Arizona employee indicates regional executives played a role in the spread of the sales practices behind the bank’s recent scandal




Wells Fargo offices in Phoenix. An anonymous employee letter sent to bank executives claims that regional executives who oversaw bank branches in Arizona encouraged bankers to lead customers to open multiple products or to find ways to open accounts without customers’ specific knowledge.
Wells Fargo & Co. employee letter to top executives cites allegedly questionable practices in its Arizona region. The letter, sent anonymously, suggests how bad behavior in one part of the bank may have spread to other parts of the country, fueling its sales-practices scandal.
The letter, reviewed by The Wall Street Journal, claims that regional executives who oversaw bank branches in Arizona encouraged bankers to lead customers to open multiple products or to find ways to open accounts without customers’ specific knowledge.
Arizona was one epicenter of questionable practices at Wells Fargo that led to a regulatory enforcement action against the bank, public outrage and the abrupt exit of its chief executive. The bank hasn’t admitted or denied wrongdoing but is in the process of refunding as many as 2.1 million customers impacted by the questionable sales practices over the past five years. It also is investigating behavior two years beyond that.
The letter from a bank manager was sent late last month to Mary Mack, who in July took over as Wells Fargo’s head of retail banking, as well as human-resources executives and a “code of ethics” email address.

1 comment:

  1. I am very curious to know just how much money is in question here. Also, interesting note related to the marketing of the company, while watching the results of the election last night, Wells Fargo ran an ad, definitely a good will kind of campaign, to show how much they value their customers and how they are making this right. Pretty quick thinking on the part of their PR and marketing departments.I am very interested to see how this plays out.

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