According to the New York Times, Wells Fargo would like to close the chapter on the sham account scandal, saying it has changed its policies, replaced its chief executive and refunded $2.6 million to customers. However, lawmakers and regulators say they will not let it go that quickly.
1. Who were the customers that Wells Fargo targeted to meet steep sales goals?
2. What action did the Board of Supervisors in San Francisco take against Wells Fargo?
3. What patterns did this scam take at various branch banks?
4. Do you think that Wells Fargo should be further sanctioned by regulators? Discuss.
5. Do Wells Fargo’s actions rise to the level of fraud? Discuss.
Cowley, S. (2016). ‘Lions Hunting Zebras’: Ex-Wells Fargo Bankers Describe Abuses. The New York Times, Oct. 20 (Retrievable online at http://www.nytimes.com/2016/10/21/business/dealbook/lions-hunting-zebras-ex-wells-fargo-bankers-describe-abuses.html)