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Wells Fargo CEO Blames Multimillion-Dollar Fraud On The Lowest-Level Employees

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Sorry, but it's first tier management that's supposed to grasp what's going on under their noses and bear primary responsibility for failure to grasp what's going on and put an end to it.

 

But let's not let middle-management off the hook. It's clear they implemented an unsound incentive scheme who vulnerability to greed should have been anticipated.

 

As far as senior management goes, even before reading the article I faulted the CEO for failing to grasp that "the buck stops here" should fundamentally be the first assignment of fault.

 

It all comes down to, surely, that WF is the most messed of bank of all (an impressive achievement given the lengths Chase goes to top that dubious tower).

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No ethics from the top down.

 

Classic case of management putting the heels of thier boots on the throats of those with limited job options in life. Working a teller window isn't exactly rocket science. It's easy to see why the grunts did what they did to keep their jobs.

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this is the Email I've received

 

So he's going to give them all raises and performanced base pay on how nice they are to customers??

 

yeah, Right.

To our valued customers,
You may have seen news recently that some Wells Fargo customers received products and services that they did not want or need.
Every day we strive to get things right. In this instance we did not – and that is simply not acceptable.
So we are making it right.
The first step we've taken is to fully reimburse any customers who were affected by these actions.
We have been making some changes to how we do business over the last several years to ensure we are always aligned with our customers' interests. To that end, the second change is to ensure Team Members in our Retail Bank are compensated on what matters most: delivering great experiences and ensuring positive outcomes – not on product sales. For more details on this, go to wellsfargo.com/commitment.
Last week's news did not reflect Wells Fargo at its best. Your trust and confidence in us is something we hold near and dear. I know I speak for our 268,000 dedicated Team Members when I thank you for giving us the opportunity to continue serving you and supporting your financial future.
Sincerely,
John Stumpf
Chairman and CEO, Wells Fargo Bank

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I stopped by my local Wells Fargo Bank today. The staff there are always courteous. I wouldn't blame them one bit. It's 100% the fault of the people at the top. They set impossible sales goals, and if the staff can't meet them, they're fired. They end up doing these sneaky things so they won't get fired, but they're fired anyway. These lower level staff get fired either way. "Nice" place to work at.

 

The people at the top had to know, because they encouraged this crap. I didn't just fall off the turnip truck.

 

I hope the Wells Fargo CEO office reads these posts, but I doubt it.

Edited by Burgerwars

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Feds are going to investigate.. Yay

 

( ie; this is going to drag on another 5-10 years. )

 

https://consumerist.com/2016/09/15/feds-investigating-wells-fargo-after-employees-open-2-million-fake-accounts/

 

Federal prosecutors in U.S. attorney’s offices in New York and San Francisco are in the early stages of an investigation related to the bank’s alleged improper sales tactics that started in 2013, The Wall Street Journal reports, citing sources familiar with the matter.
The investigation centers on whether someone in senior management within the bank directed employees to falsify documents in conjunction with the opening of more than one million accounts and other banking products without customers’ knowledge.
The probe, sources say, could eventually lead to criminal or civil charges. So far, prosecutors have issued a subpoena for documents and materials related to the sales practices.

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Of course the Ceo was gone throw the low level grunts under the bus.

There should be a RICO investigation just like the mob or coke cartels.

 

General Mattis should replace the CEO to instill leadership accountability skills throughout the organization.

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Sorry, but it's first tier management that's supposed to grasp what's going on under their noses and bear primary responsibility for failure to grasp what's going on and put an end to it.

 

But let's not let middle-management off the hook. It's clear they implemented an unsound incentive scheme who vulnerability to greed should have been anticipated.

 

As far as senior management goes, even before reading the article I faulted the CEO for failing to grasp that "the buck stops here" should fundamentally be the first assignment of fault.

 

It all comes down to, surely, that WF is the most messed of bank of all (an impressive achievement given the lengths Chase goes to top that dubious tower).

WF doesn't really have a good excuse. This was going on for quite some time and after it became clear that the pressure to sell was producing some degree of systemic fraud processes should have been put in place to identify fraudulent cross product adds. All the info was available internally and should not have been hard to stop. Apparently it was not until some time after many were going public. DoJ has started looking into it. We'll know in a year or so.

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Maybe it's time to set an example and bring on some indictments but it will be a mighty slow process

The easiest indictments will be the lowest level employees who actually committed the fraud vs the higher levels that set the tone that allowed it to occur.

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