Shady business practices6/29/2023 ![]() The long shadow of Wells Fargo impropriety Responding to the criticism to the Times, Wells Fargo executives stated that the bank’s culture had improved and that fewer employees were incentivized to sell products to customers. ![]() In a survey of more than 27,000 employees in the bank’s information-technology department late last year, top concerns included their ability to raise grievances with managers and whether “Wells Fargo conducts its business activities with honesty and integrity.” Workers recently flooded the bank’s internal blog with hundreds of angry comments about Wells Fargo’s sales incentives, pay and ethics and leaders’ “doublespeak,” according to screenshots of the blog reviewed by The Times. The investigation indicated that there is large-scale concern internally among the rank-and-file workers about the authenticity of Wells Fargo’s new commitment to ethical business practices: A financial adviser interviewed noted the company pushed her to steer clients toward fee-generating investments including an instance in which “it was not in the client’s best interest.” There’s “no evidence” that workers are secretly opening accounts in customers’ names, as they did in the past, but employees have reportedly been pressured by Wells Fargo to sell financial products customers can’t afford, collect credit card debt at breakneck speeds, and send incorrect interest rates and fee calculations on mortgages. ![]() But according to a new report from the New York Times, the nation’s fourth-largest bank hasn’t been reformed as much as it’s been rebranded.Īccording to Times reporters Emily Flitter and Stacy Cowley, “Wells Fargo workers say they remain under heavy pressure to squeeze extra money out of customers” and that employees “have witnessed colleagues bending or breaking internal rules to meet ambitious performance goals.” Wells Fargo lost so much public trust for the bank’s shady business practices, which came to light in the aftermath of the Great Recession, that it spent much of last year apologizing with its Wells Fargo “ Re-established” campaign. ![]()
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