Wednesday, September 21, 2016

Wells Fargo Cross Marketing

Chairman of the board and CEO John Stumpf is his own boss at Wells Fargo. Elizabeth Warren unleashed a verbal barrage at Stumpf on Tuesday, calling the embattled bank boss "gutless" and demanding he step down. "You should resign. You should be criminally investigated," Warren told Stumpf during a fiery one-sided exchange at the Senate Banking Committee's Wells Fargo hearing.

There's evidence that Wells Fargo drilled the marketing team for customers to have mutable accounts with the bank which many were forged without the customer knowing, completely illegal.  As many as eight products were forced on customers where the normal is three, like a credit card, savings, and checking. But for Wells and other banks tied into the cross marketing of bank products one ask the question what kind of profit can that create for the banks? Well, some customers complained of late fees on accounts they did not know they had, which in turn will lower one's credit score.  With lowering your score you will be punished by higher interest rates and for a long term on millions of accounts around the world think of the money made just on the interest increase from this new banking scam.  The mechanics behind this scam would pull money from existing accounts and create new ones forging the costumes signature creating Pin numbers which in turn created overdraft fees from insufficient funds in the newly created accounts without customers knowing or consent. WTF! 

Warren slammed Stumpf for failing to fire any senior executives linked to the scandal, while Wells Fargo's aggressive sales tactics helped pump up the bank's stock price.  She said Stump's personal holdings of Wells Fargo stock increased by more than $200 million while the fake accounts "scam" was going on, thanks in part to the bank's success in selling tons of products to customers that they didn't need.  "You squeezed your employees to the breaking point so they would cheat customers and you could drive up the value of your stock and put hundreds of millions of dollars in your own pocket," Warren said. 

Well, Fargo, it would serve you right if every customer dumped all your products and run your well dry. 
Senator Elizabeth Warren's two round of questions for Wells Fargo CEO John Stumpf on September 20, 2016, Senate Banking Committee hearing entitled: "An Examination of Wells Fargo’s Unauthorized Accounts and the Regulatory Response. 

Senator Elizabeth Warren

John Oliver on Wells Fargo 

Seems that the bandage Stumpf was wearing on his right hand at the congressional hearing was from carpal-tunnel, writing all the fake e-mails of forged customer accounts.  One of Stumpf's brilliant comments from an interview, "you can't teach caring and you can't teach sharing". 

Bye - Bye Stumpy!


Update: Nov 11th 

Buffett blames CEO for Wells Fargo scandal Warren Buffett said Friday that former Wells Fargo chief executive John Stumpf bears blame for a system that encouraged staff to set up bogus accounts and then made matters worse by not fixing the problem.

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