Wells Fargo scandal

[11B4V]

Ouch

Seedy's head explodes.

5,300 Wells Fargo employees fired over 2 million phony accounts

http://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/

[CountDeMoney]

I came.

[Martinus]

Wrong incentives create wrong behaviour. Film at 11.

[jimmy olsen]

Ouch

Seedy's head explodes.

5,300 Wells Fargo employees fired over 2 million phony accounts

http://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/

The ones who should be fired are the executives who pressured their employees into making those accounts.

[The Brain]

Was it legal to create the accounts?

[Martinus]

Was it legal to create the accounts?

Most likely not. Looks like fraud to me.

[HVC]

Was it legal to create the accounts?

they moved people's money to the fake accounts too, not just created them.

[Martinus]

Was it legal to create the accounts?

they moved people's money to the fake accounts too, not just created them.

Creating an account for someone who didn't agree and then charging them for it seems like a fraud in my book, even if they were not moving the money.

[HVC]

Was it legal to create the accounts?

they moved people's money to the fake accounts too, not just created them.

Creating an account for someone who didn't agree and then charging them for it seems like a fraud in my book, even if they were not moving the money.

true, but the act of moving the money would move it to wire fraud and laundering, wouldn't it? 

[garbon]

Yep, always been a pretty shitty company.

[Martinus]

I just skimmed the article but it does not seem to me to address in any way the dysfunctional incentive system that leads to such behaviour.

People in banks are really pressured to reach even higher, unrealistic sales targets, with their jobs on the line (I guess it's really hard to call it an "incentive system" any more - it's more "gun-to-the-head" system, because the pay is structured in a way that means you cannot support yourself if you do not meet the targets - provided they don't fire you in the first place). Of course they can always go work elsewhere, but it is not always an option. This is a systemic issue and not just a case of some rogue employees, imo. It is not limited to one bank either.

[The Brain]

So what has come of the police investigations? Surely all cases were reported to the police.

[garbon]

It is not limited to one bank either.

Yes, all banks are evil.

[CountDeMoney]

Yep, always been a pretty shitty company.

I would refinance my mortgage with another company, but it would just eventually get bundled and sold back to Wells Fargo anyway.

I am glad that they fired all those illegal immigrants, though.

[Martinus]

So what has come of the police investigations? Surely all cases were reported to the police.

I would imagine the Obama's attorney general's memo is still in force and no criminal charges are brought against bank employees for fear of disrupting the finance system.