Earlier this month, Wells Fargo, the very well-known financial services company, committed some acts that has caused an uproar in the media. Wells Fargo fired more than 5,000 of their employees because they were signing their customers up for checking and savings accounts without their knowledge. This included moving money from their existing accounts into new ones causing a domino effect of problems. Customers were outraged when they were overdrafting their accounts because the money they thought was there, no longer was. Employees weren’t creating these fake accounts just for the fun of it though. They were constantly nagged by their supervisors and higher ups to meet the account quotas, which included opening up checking and savings accounts, CD’s and even mortgages. Employees were doing anything they could to reach their quota set by the CEO and Chairman of Wells Fargo, John G. Stumpf.
Now that Wells Fargo has gained media publicity for this scandal, the people are attacking John Stumpf and asking what he has done and what he is going to do as a result. As of right now, the answer is nothing. Stumpf doesn’t seem to have any plans when he is questioned about the scandal. Recently, the Senator of Massachusetts, Elizabeth Warren, interrogated the CEO with questions that everyone is asking, but no one is receiving any answers to. She got the answers that everyone was waiting to hear, but it wasn’t easy for Stumpf to admit to them. Elizabeth Warren did not go easy on him because she wasn’t going to put up with the phony lies anymore—everyone needed answers. “OK, so you haven’t resigned. You haven’t returned a single nickel of your personal earnings. You haven’t fired a single senior executive,” Warren said to Stumpf. John Stumpf is placing the blame on everyone else and instead of holding himself accountable for the scam. The acts may have been committed by the employees working in the branches, but the root of the problem is with the senior executives that Stumpf has failed to fire, including himself. He needs to take action and make some serious changes with his executives and the ethics Wells Fargo is run on. Elizabeth Warren stumps the CEO when she calls him out by saying, “Other big banks average three accounts per customer, but you set the target at eight accounts. Every customer at Wells should have eight accounts. And that’s not because you ran the numbers and found that the average customer needed eight banking accounts. It is because, ‘Eight rhymes with great.’ This was your rationale right there in your 2010 annual report”. “Eight rhymes with great,” that is the basis for Wells Fargo’s transactions all because the Chief Executive Officer is uneducated in the art of his financial services company. This man had nothing to say to his own words because it was brought to light in a time where his company struggles.
Wells Fargo has been aware of what has been happening the past few years, but has disregarded it completely and has failed to save their reputation and customers. John Stumpf has yet to make any changes to the dynamic of the company and his lack of productivity is only creating a negative perspective on Wells Fargo and the services they provide.