Summary of Breakdown and Repair

The Wells Fargo Reputational Crisis and Its Aftermath

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Breakdown and Repair summary
Wells Fargo bankers systemically defrauded customers for five years.

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In September 2016, US-based bank Wells Fargo shook public confidence when it revealed that its retail branches had opened two million accounts without customer consent. In writing for the Global Association of Risk Professionals, veteran business journalist L.A. Winokur collected assessments from investigators and risk experts, as well as statements from Wells Fargo board members and employees, to provide a basis for his 360-degree overview of the issues involved in the complex banking scandal. getAbstract recommends Winokur’s analysis to leaders in the banking industry, corporate risk professionals, government regulators and banking customers everywhere.

In this summary, you will learn

  • Why US-based Wells Fargo retail bankers created two million accounts without customer authorization,
  • Why the Wells Fargo leadership didn’t find out about the systemic nature of the customer fraud until the scandal went public in 2016, and
  • How Wells Fargo plans to prevent similar scandals in the future.
 

Summary

In September 2016, America’s highly respected retail bank Wells Fargo & Co shocked many observers when it agreed to pay $185 million in regulatory fines for creating more than two million accounts without the knowledge or consent of customers. Numerous experts and risk management professionals have since tried to explain how and why a bank known for its strong customer relationships could allow these illegal practices to go on for years.

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About the Author

L.A. Winokur is a business journalist.


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