Wells Fargo had a situation about 3.5 million fake bank and credit card accounts and Wells Fargo found out that the customers enrolled online bill pay without authorization and about 528,000 didn’t authorize it. “We apologize to everyone who was harmed by unacceptable sales practices that occurred in our retail bank” stated by Wells Fargo CEO Tim Slogan (Egan, 2017, money.cnn.com). So, CEO Tim Slogan said that he is working on the refund with $910,000 to the customers for 528,000 improper online bill pay enrollments. Senator Elizabeth Warren stated in Twitter, “The @federalreserve should remove every @wellsfargo board member who served during this scandal. I don’t know what they are waiting for” (Egan, 2017, money.cnn.com).
Also, Wells Fargo had a big settlement to cover the fake accounts back in 2002 which the federal judge approved. I think CEO Tim Slogan need to do something since the fake accounts repeated and about to lose money because the customers could go to different bank. I am one of Wells Fargo customers and never know about this. Once, I got an email from Wells Fargo and wants me to fill out to see if I am one of customers with fake accounts could get the refund which I thought it was a scam. I never enrolled online bill pay. Maybe Senator Warren is right about remove every board member to replace new board member to notice something’s wrong and immediate to fix problem.
I assume that is reward power because the leader will pay the customers back with the refund which that is considering reward, but does they follow CEO what he wants? No. Obviously, CEO Tim Slogan didn’t do something during 2002 scandal and it went repeated recent. I think the leader had a bad leadership decision-making about online bill pay and need to tell the customers to authorize it and be carefully read before enrolls for the online bill pay. Wells Fargo is one of America’s bank and they need to fix so Wells Fargo could be trust again by Americans. I am sure that it impacted a big time for every Americans to see if they want to enroll online bill pay by Wells Fargo and the society, they probably don’t care because I noticed most of Americans like to pay bill through online.
In the video, it showed Senator Elizabeth Warren and Yellen in the court room talked about how Senator Warren want the Federal removes Wells Fargo twelve directors. The video doesn’t have captioned but show the subtitles about that part. I assume that she wants the Fed remove them because of lack of leadership decision-making and didn’t perform their job to fix the situation with fake accounts. I understand that Senator Warren don’t have a power to do that but just vent her feelings to have an open discussion about what to do with Wells Fargo fake accounts to prevent in the future than let it repeat.
Egan, M. (2017). Wells fargo uncovers up to 1.4 million more fake accounts. Retrieved from https://money.cnn.com/2017/08/31/investing/wells-fargo-fake-accounts/index.html