Page 4 - Wells Fargo Bank (C) Case Study
P. 4
Introduction
In September 2016, U.S.
regulators fined Wells Fargo
$185 million for repeatedly
creating fake customer
accounts to artificially inflate
the bank's books.
In September 2016, Wells
Fargo was issued a combined
total of $185 million in fines
for creating over 1.5 million checking and savings accounts
and 500,000 credit cards that its customers never authorized.
The scandal has led to the firing of nearly 5,300 employees
and $5 million being set aside for customer refunds on fees
for accounts the customers never wanted.
By 2 February 2018 Wells Fargo was struck with one of the
nd
harshest punishments ever handed down by the Federal
Reserve. Wells Fargo, would not be allowed to grow its
business until it convinced the Fed it had cleaned up its act.
To start with the bank agreed to replace four members
(25%) of its board of directors.
