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Breakdown and Repair
Article

Breakdown and Repair

The Wells Fargo Reputational Crisis and Its Aftermath

GARP, 2017

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Editorial Rating

8

Qualities

  • Overview
  • Background

Recommendation

In September 2016, US-based bank Wells Fargo shook public confidence when it revealed that its retail branches had opened two million accounts without customer consent. In writing for the Global Association of Risk Professionals, veteran business journalist L.A. Winokur collected assessments from investigators and risk experts, as well as statements from Wells Fargo board members and employees, to provide a basis for his 360-degree overview of the issues involved in the complex banking scandal. getAbstract recommends Winokur’s analysis to leaders in the banking industry, corporate risk professionals, government regulators and banking customers everywhere.

Take-Aways

  • In September 2016, US bank Wells Fargo & Co agreed to pay $185 million in fines for creating two million accounts without customer consent.
  • Experts attribute the fraudulent practices to the bank’s culture, which based employee compensation on the number of new accounts opened.
  • Between 2011 and 2016, Wells Fargo fired 5,300 lower-level employees for opening accounts without customer authorization.

About the Author

L.A. Winokur is a business journalist.


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