The Wells Fargo Fake Account Scandal Explained

In this video we cover the Wells Fargo fake accounts scandal which was exposed in 2016. This was one of the biggest cases of fraud in US banking history and resulted in more than $3 billion of fines and penalties for the banks. In this video, we'll look at what Wells Fargo did, how they got caught, and what the consequences were.

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[kungfujoe]

you know the big boys can get away with a slap on the wrist or less

[kungfujoe]

you know what would really punish wells fargo...
bailling them out

[trinsit]

The shittiest part is where they ALL only get a slap on the wrist and get fined a small percentage of what they scammed. Firing the CEO doesn't matter if you let them keep their golden parachute

[thomas]

As I recall the Wells Fargo Head of Retail resigned with a golden handshake and performance bonus worth millions just as the scandal broke. The banks signed off on it with no way to clawback funds.

Truly the worst of corporate excesses and privilege.

[Jumpman-cbhw]

You should have mentioned the 2 trillion asset cap which cost the bank over 4 billion in the last years.

[damilare]

This is why I don't trust any mgmt that says "I have an open door policy"

[lawrenceo]

No criminal charges. Ceo runs the company. He should take the consequences /punishment

[irbose]

My friend used to work at wells during these times. He created so many fake accounts every months, it was unreal. I knew better than to ever bank with them.

[Ro-ninm]

Blatant theft and jail time should apply

[realazduffman]

This cross-sell thing was big at all banks back then. Place I worked at my boss asked why I did not try to cross sell the "offered" product, mutual funds, to a guy we declined for an auto loan. I explained that to do so was a stupid thing that would cost us a customer. Now, he knew I knew he was just saying the company line and could not offer a response beyond, "well, that is what they want us to do." We had the same conversation every month about pointless cross sells. I eventually was driven out.

[victief]

incredible if I have heard that my bank would do that I will quit being a customer. In Austria they would have lost 50% of customer and go bankrupt.

[icemanleo]

I was afraid when I had to open a Well Fargo account to finance my floors.... then again they are all crooked

[davidx.]

"Corporate responsibility" is an oxymoron

[kassiekemp]

Is the bank in Griffin, Georgia going to be closed

[stunsisacul]

I know a lot of people who a 5k fine would ruin them.

[midlandsman]

So 5, 300 ordinary level employees lost their jobs and the board was nearly all intact???
That’s actually disgraceful.

[rustinpierce]

Funny to think if someone goes in and robs a bank or commits fraud at that bank the person gets slammed hard with the justice system. However if a bank itself steals from customers or commit fraud gets a slap on the wrist a small fine that is not even close to how much they stole yet they call us criminals.

[Contentisdata]

I'm SO GLAD I didn't open that Business Account with them in 2017....
They should be shutdown as a Bank!

[olilliansmith]

I have been scammed Wells Fargo set up accounts on my account and took my money $5, 000 at one time now the sheriff's Department

[DanaFusco]

It’s not just the banks! Companies like Verizon, Tmobile etc are doing the same thing. Check your bills people!