2 million fake account ….
5300 employee fired….
185 million dollar penalty…. and more
It’s one of the biggest scandal of our time, manufactured by the financial mavericks of wall street, the best and the brightest of banking, doing everything they can to win, even if it means breaking and bending the rules.
The way it worked was that employees moved funds from customers’ existing accounts into newly-created ones without their knowledge or consent. The practice is known as “widespread.” Customers were being charged for insufficient funds or overdraft fees — because there wasn’t enough money in their original accounts.
Employees went so far as to create phony PIN numbers and fake email addresses to enroll customers in online banking services.
Additionally, Wells Fargo employees also submitted applications for 565,443 credit card accounts without their customers’ knowledge or consent. Roughly 14,000 of those accounts incurred over $400,000 in fees, including annual fees, interest charges and overdraft-protection fees.
Wells Fargo employees even secretly created millions of unauthorized bank and credit card accounts — without their customers knowing it — since 2011.The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.
Though, there is new about banks bending rules to make money, some might even argue it’s part of their job. Wall Street is flooded with bank trying to make big bucks by doing what it’s take to get the job done, but based in the heart of Silicon valley, Wells Fargo wan’t like those banks, known for its spotless record, it was one of the most trusted banks dominating the US economy. Will Us finally tighten much needed regulations on it’s banking system?, only next President can answer this question.