Wells Fargo: When eight wasn't great
Case Study

Wells Fargo: When eight wasn't great

5 pages
April 2022
Reference: IMD-7-2361

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
Finance, Cross-selling, Fake Account, Risk Management
Settings
United States of America
Wells Fargo, Banking
2002-2016
Type
Published Sources
Copyright
© IMD 2022
Language
English
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre, UK Office

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Fax +44 (0)1234 751125
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

The Case Centre, US office

Babson College

Babson Park, Wellesley MA 02457, USA
Tel +1 781 239 5884
Fax +1 781 239 5885
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Looking for something specific?
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics