A Corporate Board Shows Evidence of Sprouting A Spine

[Markola]

http://www.nytimes.com/2016/09/28/b...l?smprod=nytcore-ipad&smid=nytcore-ipad-share

We've gotten so use to immoral companies getting away with bad behavior, while regulators did little, that it's refreshing to see a board appear to step up and do its job of oversight, for once. Of course, Stumpf still has his job.

In full disclosure, I've been a very satisfied banking and mortgage Wells Fargo customer for decades and do not think any false accounts were created for me, and I happen to know an executive in New York who is a stand up philanthropist, so this whole scandal seems like it's happening in a criminal culture at a different institution than the one I've long enjoyed good service from. It's very disappointing.

 

[pb4uski]

....In full disclosure, I've been a very satisfied banking and mortgage Wells Fargo customer for decades and do not think any false accounts were created for me, and I happen to know an executive in New York who is a stand up philanthropist, so this whole scandal seems like it's happening in a criminal culture at a different institution than the one I've long enjoyed good service from. It's very disappointing.

+1 We have a credit card through them and Mom has her banking at WF. I monitor both accounts weekly and no problems at all.

We'll have to wait for the investigation to be completed but I suspect the problems will be found not to be widespread considering the huge scale of Wells Fargo. The breach of trust is more troubling.

From the CFPB's consent order:

Respondent’s analysis concluded that its employees opened 1,534,280 deposit accounts that may not have been authorized and that may have been funded through simulated funding, or transferring funds from consumers’ existing accounts without their knowledge or consent. That analysis determined that roughly 85,000 of those accounts incurred about $2 million in fees, which Respondent is in the process of refunding.
​

And:

Respondent’s analysis concluded that its employees submitted applications for 565,443 credit-card accounts that may not have been authorized by using consumers’ information without their knowledge or consent. That analysis determined that roughly 14,000 of those accounts incurred $403,145 in fees, which Respondent is in the process of refunding.
​

So that's about 2.1 million fake deposit and credit-card accounts, of which about 100,000 -- fewer than 5 percent -- brought in any fee income to Wells Fargo. The total fee income was $2.4 million, or about $1.14 per fake account.

Wells Fargo reportedly has 40 million retail customers.

https://www.bloomberg.com/view/articles/2016-09-09/wells-fargo-opened-a-couple-million-fake-accounts