Ref: IMD-7-2361

Case study

Reference: IMD-7-2361

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Wells Fargo: When eight wasn't great

Didier Cossin

By Professor Didier CossinDidier Cossin and Mopesola Ogunsulire

When former Wells Fargo CEO John Stumpf pushed his employees to sell eight Wells Fargo products per customer through cross-selling – he no doubt assumed it would be done with customers’ consent. Instead, under pressure to meet aggressive and unrealistic sales targets, Community Bank staff opened 3.5 million bogus deposit and card accounts without customers’ knowledge or permission. The scandal destroyed the bank’s reputation for sound management and led to the Federal Reserve capping the bank’s assets at $2 trillion.

Learning Objective

  • Highlights important challenges in governance and risk management in a large universal bank
Keywords Cross-selling, Fake Account, Finance, Risk Management
Settings Northern America, United States of America
Wells Fargo, Banking
Type Published Sources
Copyright ©IMD 2022
Language English
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Reference: IMD-7-2361

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Case study

Reference: IMD-7-2361

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