Background:
Money is a delicate topic, just as delicate as politics and religion. When it comes to people’s money, one must be very careful as to not cause any blunders that come with angered clients.The phony accounts scandal was first revealed to the U.S. back in September 8th, 2016. In general, unauthorized accounts were opened by employees and money from legal existing accounts were transferred to phony accounts without customers even knowing it. Not long after the incident was revealed, Wells Fargo had to deal with a lot of questions and negative comments. In the end, the bank accepted to pay 185 million dollars in fines and CEO John Stumpf was bombarded with questions from senator Elizabeth Warren and resigned.
Issues and Analysis:…show more content… The big issue was the misuse of a bank’s services to procure more money than they would usually manage. As senator Elizabeth Warren was questioning Wells Fargo’s CEO, she came to a conclusion that could sum up the disbelief of many Wells Fargo clients: “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. Instead evidently your definition of "accountable" is to push the blame to your low-level employees who don't have the money for a fancy PR firm to defend themselves.” Wells Fargo may still be on its feet, but customer loyalty must have gone down after the incident. Who would trust a bank that uses the customer’s money for its own
