Page 9 - Wells Fargo Bank (C) Case Study
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It provides retail, commercial and corporate banking
services in all states of the USA and throughout the globe
and has over 270,000 employees (1)
Industry : Banking and Financial institution
CEO: John G. Stumpf
Regulator: SEC, Banking regulators
Auditor: KPMG
Employees : 0.25 Million
Accounts: 14 Million
Fraudulent Accounts : 2 Million
In 2015, WFB, was ranked 7 on Barron’s list of “Most
th
Respected Companies”
Vito J. Racanelli,
“Apple Tops Barron’s List of Respected Companies,” Barron’s (Jun. 27, 2015).
WFB had long had a reputation for sound management with
a strategy based upon product cross-selling but by 2016 it
faced Senatorial censure when its CEO, John Stumpf, was
told:
“You should resign, you should give back the money,”
said Senator Elizabeth Warren. “And you should be
criminally investigated.”
It had emerged that WFB had for years pressured its
employees to open as many different types of accounts
(cross-selling) as possible, whether or not their customers
needed them, rewarding employees who complied with
promotions and bonuses and punishing those who did not.
