Wells Fargo Ethical Update - Identification of Ethical, Legal and Industry Related Business Issues

Wells Fargo Ethical Update 0
Title: Wells Fargo Ethical Update
Assignment Name:
Student Name:
Professor:
Date:

Wells Fargo Ethical Update 1
Executive Summary
This report summarizes an introduction to the Well Fargo Company. The identification of legal,
ethical and industry related business issues have been given. The Application of Research-Pay
for performance has been justified. How the issues were resolved and personal opinion with
conclusion has been given.

Wells Fargo Ethical Update 2
Contents
Introduction......................................................................................................................................3
Identification of Ethical, Legal and Industry Related Business Issues............................................3
Application of Research..................................................................................................................3
How the Issues are Resolved?.........................................................................................................4
Personal Opinion.............................................................................................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

Wells Fargo Ethical Update 3
Introduction
Wells Fargo and Company is a USA based multinational financial services firm
headquartered in San Francisco, California. It is the fourth largest bank in the USA. Wells Fargo
delineates 3 different consumer segments which are wholesale banking, retirement, wealth and
brokerage and community banking. There are a number of cases for apparent fraudulent
activities of Wells Fargo. This includes improper incentives, poor leadership, questionable
organizational plan, inadequate auditing and human traits as well. Wells Fargo fraud scandal is a
continuing controversial state which is brought by the creation of millions of checking accounts
without the consent of account holders. There are ample of regulatory bodies which includes the
Customer Protection Bureau has fined the company with one hundred and eighty five million
dollars as a consequence of the illegal trading accounts and the company had to face the criminal
and civil suits. The customers of Wells Fargo had been charged with the unanticipated fees on
debit cards and credit cards. According to the initial reports, the blame was on branch managers
and workers. Later on, it was recognized the blame was shifted to sales associated who were
linked to selling the financial products or multiple solutions. The bank had taken fewer risks until
the financial crisis of 2008 and this led to the image of high level management to open saving
accounts as many as possible through the help of cross selling.
Identification of Ethical, Legal and Industry Related Business Issues
The Wells Fargo bank has decided to undergo for cross-selling of products and services.
Cross-selling implies consumers who are using one service can be motivated to use other
services like credit cards and savings. A specific strategy was established for encouraging cross-
selling. Well Fargo was engaged with time honored tactic of providing the incentives to