Wells Fargo

Lies, damned lies, and statistics.
User avatar
Anaxagoras
Posts: 20355
Joined: Wed Mar 19, 2008 5:45 am
Location: Yokohama/Tokyo, Japan
Has thanked: 1254 times
Been thanked: 1033 times

Wells Fargo

Postby Anaxagoras » Tue Sep 13, 2016 4:01 pm

Sometimes you just gotta shake your head. This is how the world works.

Wells Fargo fired 5,300 workers for improper sales push. The executive in charge is retiring with $125 million.

When Wells Fargo was hit last week with $185 million in fines after thousands of its employees were caught setting up fake accounts customers didn't ask for, regulators heralded the settlement as a breakthrough.

The Consumer Financial Protection Bureau noted that the $100 million it will collect as part of the deal was the agency's "largest penalty" ever. The head of Office of the Comptroller of the Currency, a banking regulator, said its $35 million penalty would "demonstrate that such practices will not be tolerated and banks will be held responsible.” “This is a major victory for consumers,” said Los Angeles City Attorney Mike Feuer, touting the $50 million the city extracted from the bank.

But the fines being levied against Wells Fargo pale in comparison to the bank's yearly profit -- more than $20 billion in 2015.

It is also less than the more than $200 million that the stock in the company held by company's chief executive, John G. Stumpf is worth. The fines also are not that much more than the $125 million one of its top executives, Carrie Tolstedt, will walk away with when she retires this year. An 27-year veteran of the bank, Tolstedt ran the community banking division where regulators said aggressive sales goals fueled illegal behavior by bank employees,


According to regulators, thousands of Wells Fargo employees were allegedly involved in a widespread scheme to reach aggressive sales goals -- and earn bonuses -- by creating 2 million accounts, including credit cards, customers didn't authorize. The employees created phony email addresses to enroll existing customers in online-banking services, for example, and issued them debit cards they didn’t request. Customers were then often hit with assorted fees for accounts they didn't know they had, the regulators charged.


So the peons were given unrealistically ambitious sales targets and when they can't make their targets honestly they set up fake accounts or signed up customers for credit cards they didn't ask for. They get fired but the executive who set their targets walks away with a fortune.
A fool thinks himself to be wise, but a wise man knows himself to be a fool.
William Shakespeare

User avatar
sparks
Posts: 13001
Joined: Fri Oct 26, 2007 4:13 pm
Location: Friar McWallclocks Bar -- Where time stands still while you lean over!
Has thanked: 1503 times
Been thanked: 483 times

Re: Wells Fargo

Postby sparks » Tue Sep 13, 2016 4:22 pm

Yep. Bidnez as usual.

I make it a point to immediately pull my accounts from any financial institution I happen to be doing business with the very moment they try to sell me something without my inquiring about it first. Credit Unions are usually pretty good about that sort of shit. The rest of those flaming tit heads, not so much. Saddle 'em up with something they don't need/can't afford/didn't ask for and then watch 'em circle the drain while President and CEO Shitsmear buys another summer house.

Fucking madness.

But remember: Tighter regulation of these fucking asshats will fuck the economy kids!!! Talk radio says so!
You can lead them to knowledge, but you can't make them think.

User avatar
Grammatron
Posts: 32364
Joined: Tue Jun 08, 2004 1:21 am
Location: Los Angeles, CA
Been thanked: 1438 times

Re: Wells Fargo

Postby Grammatron » Tue Sep 13, 2016 5:36 pm

Anaxagoras wrote:So the peons were given unrealistically ambitious sales targets

Ok, that sounds like a business problem.
and when they can't make their targets honestly they set up fake accounts or signed up customers for credit cards they didn't ask for.

Well that sounds incredibly fraudulent, I hope someone would get fired or worse.
They get fired but the executive who set their targets walks away with a fortune.


Yes the executives set the target, but did they encourage or approve of the fraudulent practices?

This is a regulatory issue, IMO. The stockholders seem to be unable, unwilling, or not savvy enough to force the board to stop giving away golden parachutes for failure. The regulations should nullify any severance in cases of widespread fraud or similar negative practices.
pillory wrote:jokes aren't funny....seriously thinking......

seriously thinking might be funny....but it's not joke

User avatar
corplinx
Posts: 19580
Joined: Tue Jan 29, 2008 12:49 am
Title: Moderator
Has thanked: 180 times
Been thanked: 611 times

Re: Wells Fargo

Postby corplinx » Tue Sep 13, 2016 9:29 pm

I've been watching this and not believing it because it is so bizarre.

I mean really??

(I believe it, it's just so weird...)

User avatar
Nyarlathotep
Posts: 47021
Joined: Fri Jun 04, 2004 2:50 pm
Has thanked: 741 times
Been thanked: 1292 times

Re: Wells Fargo

Postby Nyarlathotep » Tue Sep 13, 2016 9:32 pm

A friend of mine worked at Wells Fargo about 10 years ago, he said he believes it 100% because he saw it, reported it to his superiors and got in trouble as a result. And he isn't the sort to exaggerate or make up bullshit, so I believe him when he says it.

Says the big problem was when someone who had a fake account set up in their name came in to legitimately open an account, found they already had one and it was already overdrawn as a result of the fees. That exec shouldn't have gotten a bonus, he should be held personally responsible for every penny of those falsely accrued overdraft fees.
Bango Skank Awaits The Crimson King!

User avatar
Skeeve
Posts: 9653
Joined: Wed Jun 09, 2004 7:35 am
Has thanked: 27 times
Been thanked: 69 times

Re: Wells Fargo

Postby Skeeve » Tue Sep 13, 2016 9:58 pm

I like this one better...

WELLS FARGO INSTITUTIONALIZES FRAUD – GETS SLAPPED ON WRIST

When was the last time you heard of a company firing over 5,000 employees due to fraud? My answer is never. I’ve never heard of a company firing 2% of their workforce and citing fraud. Outside of a recession or a merger, a company announcing they are firing 5,000 employees is rare. If I had to give you one guess what industry such a company came from I’m willing to bet you’d guess the financial services industry…and you’d be right.

Wells Fargo, in a stunning announcement this week, fired 5,300 employees for opening up deposit and credit card accounts for customers without their permission. This action is unprecedented in its scale, but not in its source. We’ve come to expect bad behavior from big banks and Wells Fargo has delivered (normally it’s Merrill Lynch that delivers). Big banking has moved on after the financial crisis that nearly wiped them all off the map and is now back in action using poor incentive plans to drive bank sales…is this even surprising? No, except for the fact that the people being fired are regular people, not corporate bankers.


Yep....
...
The bigger question is how such a widespread fraud went undetected by the company (it took an LA Times story). My suspicion is that it didn’t go undetected, it was encouraged. What bothers me most about this reveal is that no one is being prosecuted criminally, no one at the top has lost their job. The CEO made nearly $20 million last year…and still has his job. None of the senior executives have been fired and the fine of $185 million will not send any signal at all (despite the CFPB handing down its largest fine ever). The net income in the second quarter of 2016 for Wells Fargo was $5.6 billion. $185 million doesn’t make a dent. Bad behavior will continue.

Image
Then Skank Of America could start in...

User avatar
Grammatron
Posts: 32364
Joined: Tue Jun 08, 2004 1:21 am
Location: Los Angeles, CA
Been thanked: 1438 times

Re: Wells Fargo

Postby Grammatron » Tue Sep 13, 2016 10:00 pm

It's ok Skeeve, soon the Democrats will be in charge of the Federal government and they sure won't allow things like this to happen again.
pillory wrote:jokes aren't funny....seriously thinking......

seriously thinking might be funny....but it's not joke

User avatar
JEROME DA GNOME
Posts: 5140
Joined: Sat Sep 29, 2007 1:13 am
Has thanked: 2 times
Been thanked: 4 times

Re: Wells Fargo

Postby JEROME DA GNOME » Tue Sep 13, 2016 10:20 pm

Grammatron wrote:The stockholders seem to be unable, unwilling, or not savvy enough to force the board to stop giving away golden parachutes for failure. The regulations should nullify any severance in cases of widespread fraud or similar negative practices.


lol, you don't know how the system works.

Under a fascist system, the elite class is always raking off the working class.
What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious.

User avatar
Anaxagoras
Posts: 20355
Joined: Wed Mar 19, 2008 5:45 am
Location: Yokohama/Tokyo, Japan
Has thanked: 1254 times
Been thanked: 1033 times

Re: Wells Fargo

Postby Anaxagoras » Tue Sep 13, 2016 11:07 pm

Grammatron wrote:
Anaxagoras wrote:So the peons were given unrealistically ambitious sales targets

Ok, that sounds like a business problem.
and when they can't make their targets honestly they set up fake accounts or signed up customers for credit cards they didn't ask for.

Well that sounds incredibly fraudulent, I hope someone would get fired or worse.
They get fired but the executive who set their targets walks away with a fortune.


Yes the executives set the target, but did they encourage or approve of the fraudulent practices?

This is a regulatory issue, IMO. The stockholders seem to be unable, unwilling, or not savvy enough to force the board to stop giving away golden parachutes for failure. The regulations should nullify any severance in cases of widespread fraud or similar negative practices.


Well given that it wasn't 10 or 20 employees but 5000, hell yeah the executive "encouraged the practice".
A fool thinks himself to be wise, but a wise man knows himself to be a fool.
William Shakespeare

User avatar
gnome
Posts: 21507
Joined: Tue Jun 29, 2004 12:40 am
Location: New Port Richey, FL
Has thanked: 314 times
Been thanked: 322 times

Re: Wells Fargo

Postby gnome » Mon Sep 19, 2016 8:33 pm

That seems like a classic enough scam. Give lip service to the rules, but set unattainable goals. Then fire people that cheat to survive and get caught.
"If fighting is sure to result in victory, then you must fight! Sun Tzu said that, and I'd say he knows a little bit more about fighting than you do, pal, because he invented it, and then he perfected it so that no living man could best him in the ring of honor. Then, he used his fight money to buy two of every animal on earth, and then he herded them onto a boat, and then he beat the crap out of every single one. And from that day forward any time a bunch of animals are together in one place it's called a zoo! (Beat) Unless it's a farm!"
--Soldier, TF2

User avatar
JEROME DA GNOME
Posts: 5140
Joined: Sat Sep 29, 2007 1:13 am
Has thanked: 2 times
Been thanked: 4 times

Re: Wells Fargo

Postby JEROME DA GNOME » Mon Sep 19, 2016 9:06 pm

gnome wrote:That seems like a classic enough scam. Give lip service to the rules, but set unattainable goals. Then fire people that cheat to survive and get caught.


Because conspiracies in business fit your world view, but conspiracies in politics do not.

lol, what a great tool for fascism you make.
What a man believes upon grossly insufficient evidence is an index into his desires -- desires of which he himself is often unconscious.

User avatar
Nyarlathotep
Posts: 47021
Joined: Fri Jun 04, 2004 2:50 pm
Has thanked: 741 times
Been thanked: 1292 times

Re: Wells Fargo

Postby Nyarlathotep » Mon Sep 19, 2016 9:22 pm

What a fucking idiot you are
Bango Skank Awaits The Crimson King!

User avatar
sparks
Posts: 13001
Joined: Fri Oct 26, 2007 4:13 pm
Location: Friar McWallclocks Bar -- Where time stands still while you lean over!
Has thanked: 1503 times
Been thanked: 483 times

Re: Wells Fargo

Postby sparks » Mon Sep 19, 2016 10:27 pm

Just Mildred being Mildred. Dumb as a post with an abiding need to let everyone know it.
You can lead them to knowledge, but you can't make them think.

User avatar
Grammatron
Posts: 32364
Joined: Tue Jun 08, 2004 1:21 am
Location: Los Angeles, CA
Been thanked: 1438 times

Re: Wells Fargo

Postby Grammatron » Mon Sep 19, 2016 10:28 pm

Anaxagoras wrote:Well given that it wasn't 10 or 20 employees but 5000, hell yeah the executive "encouraged the practice".


Encourage the practice of opening as many of these accounts as possible or fraud?
pillory wrote:jokes aren't funny....seriously thinking......

seriously thinking might be funny....but it's not joke

User avatar
sparks
Posts: 13001
Joined: Fri Oct 26, 2007 4:13 pm
Location: Friar McWallclocks Bar -- Where time stands still while you lean over!
Has thanked: 1503 times
Been thanked: 483 times

Re: Wells Fargo

Postby sparks » Mon Sep 19, 2016 10:32 pm

It's perfectly simple: If everyone who deals with Banksta Fraud Fargo would simple cancel all accounts and move them elsewhere, then Wells Fuckwit would soon be hurting big time and that'd be the end of that shit.

Then Skank Of America could start in...
You can lead them to knowledge, but you can't make them think.

User avatar
gnome
Posts: 21507
Joined: Tue Jun 29, 2004 12:40 am
Location: New Port Richey, FL
Has thanked: 314 times
Been thanked: 322 times

Re: Wells Fargo

Postby gnome » Mon Sep 19, 2016 10:48 pm

JEROME DA GNOME wrote:
gnome wrote:That seems like a classic enough scam. Give lip service to the rules, but set unattainable goals. Then fire people that cheat to survive and get caught.


Because conspiracies in business fit your world view, but conspiracies in politics do not.

lol, what a great tool for fascism you make.


Yes, that's exactly it, because not believing your favorite conspiracy means I think government are all nice people that can always be trusted.
"If fighting is sure to result in victory, then you must fight! Sun Tzu said that, and I'd say he knows a little bit more about fighting than you do, pal, because he invented it, and then he perfected it so that no living man could best him in the ring of honor. Then, he used his fight money to buy two of every animal on earth, and then he herded them onto a boat, and then he beat the crap out of every single one. And from that day forward any time a bunch of animals are together in one place it's called a zoo! (Beat) Unless it's a farm!"
--Soldier, TF2

User avatar
gnome
Posts: 21507
Joined: Tue Jun 29, 2004 12:40 am
Location: New Port Richey, FL
Has thanked: 314 times
Been thanked: 322 times

Re: Wells Fargo

Postby gnome » Mon Sep 19, 2016 10:55 pm

Grammatron wrote:
Anaxagoras wrote:Well given that it wasn't 10 or 20 employees but 5000, hell yeah the executive "encouraged the practice".


Encourage the practice of opening as many of these accounts as possible or fraud?


Officially, as many as possible. Effectively, fraud, by rewarding people that cheat and not looking too closely at what they're doing.
"If fighting is sure to result in victory, then you must fight! Sun Tzu said that, and I'd say he knows a little bit more about fighting than you do, pal, because he invented it, and then he perfected it so that no living man could best him in the ring of honor. Then, he used his fight money to buy two of every animal on earth, and then he herded them onto a boat, and then he beat the crap out of every single one. And from that day forward any time a bunch of animals are together in one place it's called a zoo! (Beat) Unless it's a farm!"
--Soldier, TF2

User avatar
Grammatron
Posts: 32364
Joined: Tue Jun 08, 2004 1:21 am
Location: Los Angeles, CA
Been thanked: 1438 times

Re: Wells Fargo

Postby Grammatron » Mon Sep 19, 2016 11:44 pm

gnome wrote:
Grammatron wrote:
Anaxagoras wrote:Well given that it wasn't 10 or 20 employees but 5000, hell yeah the executive "encouraged the practice".


Encourage the practice of opening as many of these accounts as possible or fraud?


Officially, as many as possible. Effectively, fraud, by rewarding people that cheat and not looking too closely at what they're doing.


Of course, and because it's so muddy I am proposing regulations that would strip executives of all these perks and parachutes if they are unable to properly manage a publicly traded company, and certainly a financial one. If the board and the shareholders are unable or unwilling to practice accountability, I think it's appropriate for regulators to help them do so.
pillory wrote:jokes aren't funny....seriously thinking......

seriously thinking might be funny....but it's not joke

User avatar
Abdul Alhazred
Posts: 68381
Joined: Mon Jun 07, 2004 1:33 pm
Title: Yes, that one.
Location: Chicago
Has thanked: 2509 times
Been thanked: 995 times

Re: Wells Fargo

Postby Abdul Alhazred » Mon Sep 19, 2016 11:49 pm

Image
Image "If I turn in a sicko, will I get a reward?"

"Yes! A BIG REWARD!" ====> Click here to turn in a sicko
Any man writes a mission statement spends a night in the box.
-- our mission statement plappendale

User avatar
WildCat
Posts: 13111
Joined: Tue Jun 15, 2004 2:53 am
Location: The 33rd Ward, Chicago
Has thanked: 25 times
Been thanked: 254 times

Re: Wells Fargo

Postby WildCat » Tue Sep 20, 2016 1:53 am

How is Warren Buffet escaping criticism over this?
Do you have questions about God?

you sniveling little right-wing nutter - jj


Return to “Politics & Social Issues”

Who is online

Users browsing this forum: CCBot [Bot] and 0 guests