Wells Fargo: A Criminal Enterprise?

        The largest Bank in San Francisco, Wells Fargo, was ordered to pay a record fine this week: it was substantial: $3.7billions. This is another chapter in the sinking of the banking giant by its in house employees. One would think this activity was the result of the action of the few. But,as described in the published reports by various regulatory agencies, the apple is/was rotten to the core. Up and down the chain of authority, managers looked the other way as underlings ignored the rules and procedures in hopes of achieving goals set by leadership at all levels. Profits, more profits, greater profits, more, more, and still more. Hmmmmm. A formula for success? No, a formula for thievery; a formula for deceptive marketing; a formula for taking advantage of everyday retail customers.

        The fine came years after it was discovered that Wells Fargo Bank imposed fees on unsuspecting account holders who were charged across many platforms related to their accounts. Many customers were attached to accounts created by the bank to generate more income opportunities. The policy included striving account managers who were ordered to ramp up the numbers. It seems corporations have forgotten their role in this country, which is: operate an honest business, federally insured, that provides the retail customer a safe place to park their hard-earned money. Many of us who observed the evolution of banking over the last few decades have been witness to the changes in the banking sector of the economy. Simply put, banks became jealous of non-banks, mortgage banks, investment banks, and international banks. Many institutions wanted in on the action. Regulators started to contend with industry demands for change, and pressure mounted.

        Even with regulatory change, growth did not accelerate quickly enough for the big banks. One result was consolidation. Banks were bought and sold. Little regional banks disappeared, swallowed by mega-banks. Customers no longer had relationships with bankers. They just became numbered customers. Personal banking was dead. Wells Fargo changed along with the many competitors in and around San Francisco. Electronic banking surely contributed to these changes. Numbers were easier to deal with now. Soon, phone service was eliminated. Want an answer to your money questions? Don't call us; we won't answer. And soon enough, bankers forgot they had real customers. Banks now just had nameless accounts with numbers for identification. It made things easier-for banks, and nightmares for retail customers. Heaped on top were ATM cards, credit cards, and the closing of hundreds of brick and mortar locations throughout the region. Soon, the shareholder became king. And the king demanded growth and profits, at any cost. And here we are.

      It's not over. The bank will pay, take a charge, and continue to fleece the lambs. Yes, a criminal enterprise lives to see another day. Wells should be closed, or better yet, sent to North Carolina to join Bank of America, formerly of San Francisco. They deserve each other.