PaymentsJournal

Wells Fargo: More Than Just Credit Card Issue

Happy young businessman reading paper in office

One of my favorite reads of all time is “All I Really Need to Know I Learned in Kindergarten: Uncommon Thoughts on Common Things”; it is short book and follows the title.  The basics apply to many facets of life; Not every “to do “ or “not to do” is covered but you can certainly read into the lines and know where process integrity and pursuing the truth fall.

The 2016 Wells Fargo issue comes to mind.  Imagine rogue credit card and checking accounts and the unthinkable situation of “cross-selling”.  Similar issues arose, such as fining another 1.4 million accounts in 2017.  And, now investigations expanding into wealth management and residential lending.

Today’s story comes from Bloomberg Businessweek and analyzes how Wells Fargo reacts to not only the scandal but the limitation by the Federal Reserve that the assets of this $1.95 trillion bank are restricted from growing.

Issues continue to arise from the original claim.  It will likely take a decade to flush out.

As the say in the South, this will be a “tough row to hoe”.  Even with the numerous terminations, earning trust back is hard, wherever you sit.

Overview by Brian Riley, Director, Credit Advisory Group at Mercator Advisory Group

Read the quoted story here