WellsFargo White Collar Crime
AnOutline Summary of Well Fargo Crime
Beforethe Wells Fargo bank scandal, there was presence of strict quotasfrom the bank managers. As stated by Matt Levine, the bank requiredits employees to meet a high number of credit cards and new bankingaccounts (Levine, 2016 3rd Para).Employees in Wells Fargocould not meet the set target due to limited clients visiting hebank. Thus, employees resulted to faking bank accounts to retaintheir employment.The employees in Wells Fargo generated fakesaccounts online by using generic emails for their transactions to becompleted such as [email protected](Levine, 2016 5th Para). Statistics indicate that WellsFargo employees opened approximately 1,534, 280 deposit accounts and565, 443 credit accounts that utilized simulation method of funding.
Wells Fargo received a fine that totaled to $185 million fromvarious regulators in U.S. Consumer Financial Protection Bureau(CFPB) required Wells Fargo to pay a fine of $100 million. CFPBtermed it against the law to fire 5,300 workers at once. It wasdifficult such as a high number of the workforce to conspire and fakeaccounts in unison (Levine, 2016 2nd Para). The Attorneyof Los Angeles fined Wells Fargo $50 million as it violated the lawsof the state. Comptroller of the Currency office also required WellsFargo to pay a fine of $35 million. Signing customers without theirconsent was likely to discourage them from transacting in the bank.Individuals rarely utilize banking products they are not aware oftheir intentions. As a result, the action of the workers was main dueto threats from the top management (Levine, 2016 11thPara). Wells Fargo made zero profit from traumatizing theiremployees to register fake accounts.
LevineMatt (2016). Wells Fargo opened a couple million fake accounts.Bloomberg view, Wall Street.https://www.bloomberg.com/view/articles/2016-09-09/wells-fargo-opened-a- couple-million-fake-accounts