Wells Fargo Involved in Shocking $185 million Scandal
Warren Buffet has been silent on the controversy surrounding Wells Fargo which happens to be the company’s biggest investor. The federal investigation is hot on the heels of the scandal that rocked the banking industry with the creation of over two million fraudulent fake bank and credit cards. Over 5,300 people have been fired within the last few years in part related to sales tactics that were deemed as improper. This most recent blow has raised grave inquiries in regards to the sales cultures that spawned the millions of unauthorized accounts opened recently. The incredibly high amounts of pressure and the relentless expectations to achieve unrealistic sales target each month were some of the statements that employees told authority news sites like CNNMoney. Working for Wells Fargo for many of these workers was described as an environment much like a pressure cooker, stewing with pent up frustration. The public has reflected this lack of accountability within megabanks during this post financial crisis.
The abuse of unaccountable bank management has been largely due to ignorant investors who lacked the oversight necessary, ultimately attracting the attention of government involvement. Since investors have failed to step up, the federal investigation will be set to begin grilling Wells Fargo on September 20 by the Senate banking committee. The CEO John Stumpf has agreed to testify at the hearing. Stumpf has affirmed that the company needs strong leadership at this time, and while he has offered apologies for the fraudulent accounts there has been no mention of his resignation. Wells Fargo has been asked by Elijah Cummings, to turn over many key documents that cover their sales tactics and techniques. Cummings is the ranking member of the House Oversight Committee, and is a powerful representative.