Wells Fargo Unethical News Wells Fargo was founded in 1852 and are widely known and is one of the banks with the most branches nationwide I think it would be safe to assume that they should be one of the most trusted as well, but unfortunately that is not the case after the huge scandal they have recently faced. In recent news Wells Fargo is facing a huge scandal after confirmation of unethical practices since 2011Wells Fargo employees have secretly opened millions of unauthorized bank and credit card accounts without customers knowing it these unauthorized accounts were made in order to hit sales targets and receive bonuses says Richard Cordray, director of the CFPB. (Egan). Wells Fargo confirmed to CNN that they indeed did fire 5,300 employees over the last few years because of unethical behavior they admitted that employees even assigned fake pin numbers and emails to register clients in online banking services. After investigation it was clear that employees opened 1.5 million unauthorized deposit accounts, employees moved funds from customers’ existing accounts into newly-created ones without them knowing or approving these actions regulators say. Customers were also being charged for insufficient funds or overdraft fees if they …show more content…
Wells Fargo Code of Ethics clearly states that customers should always be top priority; they want all employees to ask themselves Is it legal? Does it comply with our policies? Is it consistent with our values? Is it consistent with our long-term goals and interests? Would I be comfortable with my decision, if it’s made public? (Fargo), After conducting this research it really makes you think of why would huge company with such a high code of Ethics decide to push those standards to the side for company
Wells Fargo has been in business for over 160 years and was founded on March 18, 1852, by Henry Wells and William Fargo. The company opened its first office, in San Francisco, on July 1852. Wells Fargo served the West with banking needs, which included gold and paper bank drafts, and offered quick delivery of gold or other valuables. In1855, the first of many financial dilemmas took place when a drought made it impossible to mine for gold, and this caused almost 200 businesses in San Francisco to fail, but Wells Fargo didn’t fail, they prospered. In the early1860s, Wells Fargo acquired almost all the stage lines from the Missouri River to California, giving them a monopoly on transcontinental delivery services.
Henry Wells and the Fargo was the founder of the Wells, Fargo Company. Henry Wells was the founder of the Wells and Company and Fargo was a partner in Livingston, Fargo and Company. Due to increase in the competition environment they both felt to join the American Express Company that was a major competitor. After the separation of the directors and others issues to American express, they decided to establish their own Company. On the march 18, 1852 they form Wells, Fargo & Co.
Jones tried and played his cards right by using the system to his advantage and only going to small suburban branches, however red flags should still have risen at the suspicious activity occurring in the accounts. Jones clients believed that their money was being held in a trust account, in which Jones was handling money on behalf of his clients yet he held all of the money in his personal accounts this is something the bank was aware of. The fifth estate obtained documents of a bank memo proving that they were aware of Jones using his personal account for business, the matter was dropped (CBC,
Today, Wells Fargo is widely recognized for its commitment to the Hispanic and Latino community. This commitment however, is not a recent phenomenon and dates back to before the turn of the century. Since its founding in 1852, Wells Fargo had encouraged team members to treat all customers with courtesy and respect. The once informal policy became company standard in 1888 when agents and managers were required to show “proper respect to all. Let them be men, women, children, rich or poor, white or black…”
1) -During the Great Recession Wells Fargo targeted black people and convinced them to take out subprime loans. Such actions lead to the result of Wells Fargo being sued in 2010 for discrimination and a year later settling the suit paying more than 174 million. -The early economy was built on slave labor. Not only did slaves build the Capitol building, but they built the White House too.
“The most polite and gentlemanly treatment of all customers, however insignificant in their business, is insisted upon. Proper respect must be shown to all- let them be men, women, or children, rich or poor, white or black- it must not be forgotten that the company is dependant on these same people for its business.” When Henry Wells was alive, there were 8,000 workers at Wells Fargo. Today, there are 150,000 or more employees at Wells Fargo. There are 6,000 branches and from 1990-1998, their stock went up 1,197% (Smith).
Wells Fargo was found in 1852, Wells Fargo is a diversified, community-based financial services company that provides banking, insurance, investments, mortgage, and consumer and commercial financial services (Wells Fargo Today, 2017). Wells Fargo icon displayed a horse carriage with the logo “Together we’ll
Introduction One thing that has aroused my curiosity when I saw the logo of Wells Fargo, it is the western movies image that many non-Americans associated with the U.S.A. this logo (stagecoach) for a bank is unusual and as ex-bank employee, I try to learn more in order to compare. What I learned arouse my wish to work upon my graduation and why not you? Its welcome, I quote “Regardless of our growing size, scope, and reach, we must never lose sight of putting our customers first and helping them succeed financially.” (Wells Fargo & Company) summarize my interest for this company. For a financial entity of this size, you must know the history of Wells Fargo, you must know values and culture of Wells Fargo, and you must know the strategy and goals of Wells Fargo.
JPMorgan Chase Bank has faced several lawsuits in recent years. They have been hit with cases concerning fraudulent misrepresentation, bribery, and many things in between. By studying the accusations the company has faced, one receives a better understanding of who is really handling their money. An act of fraudulent misrepresentation cost JPMorgan the fine of a lifetime.
This may be our best defense in recouping on some of the lost funds. We could say the bank did not exercise ordinary care in that they didn’t have a check verification process in place to monitor for valid signatures and valid endorsements. In fact, there have been cases where banks have been held liable as the result of failing to act with reasonable ordinary care by not performing these duties. I would support this with the case of Lund v.Chemical Bank where the courts found that “a bank’s failure to follow its own internal policies and procedures is unreasonable”, thus the bank was held
It began by hackers stealing the user name and password of a current Chase Bank employee. Chase Bank had previously updated their security to use a two-factor authentication, which requires a second password when accessing secure data. However, one of the network servers was inadvertently not updated which allowed for the hackers to gain access. This oversight of one server, left a room for the hackers gain access to over 90 of its servers containing proprietary information. ("Neglected Server Provided Entry for JPMorgan Hackers - The New York Times," n.d.)
Also they had lots of other big competitions which they had to focus on. They need to get consumers in order to have a proper company. Wells Fargo competition between other banks helps get them more consumers toward their banks. Also buying Wachovia National Banks helps impact their bank because they expanded. It also helped spread banks across the U.S. which helped make them a major bank in America.
Wells Fargo’s “Gutless Leadership” Wells Fargo is one of the largest banks in the United States, with “…more than 8,600 locations [and] 13,000 ATMs” (Wells Fargo Today). Millions of Americans trust them with their finances. However, after a federal investigation, Wells Fargo has admitted to opening up to two million accounts without customers’ permission. While this had financial implications for many customers, this scandal most heavily affected Wells Fargo’s low-level employees.
The then CEO John Stumpf was forced to resign following insurmountable political and public pressure. Federal prosecutors also issued subpoenas and congressional hearings were held, for which then CEO John Stumpf attended. Additionally, on February 21, 2017, Wells Fargo terminated four high level executives involved in the scandalous news. The SEC’s investigation consists of warrants against bank executives for possible violations of GAAP principles and the Sarbanes-Oxley Act for inaccurate accounting practices. The SEC will probe possible violations of employee whistleblowing protection under the Sarbanes-Oxley and Frank-Dodson Act.
Under this approach, an action is considered morally bad because of some characteristic of the action itself, not just because the product of the action is bad. Wells Fargo unethical practices demonstrates unethical behavior, under deontological ethical theories as its employees duty to operate in an honest and fair fashion , in providing services to the public. Wells Fargo codes of conduct does not permit sales practices of these sort, therefore the employees who participated in these practices made unethical decisions. Unfortunately there was a wrong-doing on a massive scale. The acts of unethical behavior were conducted by both the employees and management.