Page 28 - Wells Fargo Bank (C) Teaching Note

Problem of Culture

Post September 2016 Wells Fargo announced a
moratorium on cross-selling and said it was addressing

its risk controls.

This is all fine and well but the problem is not a process

one, where elimination of sales quotas will patch-up the

bank’s corporate culture. It does not address the

question of accountability of strategic leadership.

Perhaps change can only be achieved by the imposition

of more punitive, legal and criminal penalties against

corporate executives.

In this light, Wells Fargo strategic leadership must also

address the following issues that affect its organisational

culture:

• Banking is not retailing

• Product development (non-interest-bearing

products)
• Remuneration structures

• Excessive focus on growth and market share
• The CEO

• Insular ethical conduct control structure

• Robust auditing