So, more problems in banking. Seems like there is something in banking that leads to crime, on the inside. Must be: TOO MUCH MONEY. Wells Fargo, the San Francisco-based giant of private/commercial banking, agreed Friday to accept a $185 million dollar fine for illegally signing up customers for Wells' products they didn't want or didn't order. Many customers found bills and fees for credit cards and programs not identified by the bank as part of the customers' account(s). The action was settled by not admitting to wrong doing and agreeing to a consent decree that includes oversight by the Consumer Finance Protection Bureau(Federal), the Office of the Comptroller of Currency(Fed), and the Los Angeles City Attorney's Office.
The bank announced that it had fired over 5000 employees as a result(a small part of the 255,000 employees worldwide), and would contact those customers affected. Many customers were unaware of the actions that affected their accounts. Agencies stated that customers should report unusual activities on their accounts. the number to call: (213) 978-3393.
Many residents in Tahoma and on Lake Tahoe's West Shore are Wells customers, a financial institution with branches around Highway 89, Highway 50, and Highway 80, etc. It seems that over aggressive sales tactics helped drive the problem to significant levels of participation. Salesmen often used bundling of products to raise commissions based on sales of those products. Customers were signed up for credit cards and loans they did not want.
Wells Fargo's stock price went down 2.4% on Friday, September 9, worse than other banking shares.
So, it seems, despite the governments best intentions, fraud and deceptive sales practices continue at major banks. When will Congress get the message: TOO BIG is the problem?
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