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.
Keywords
Cross-selling, Fake Account, Risk Management
Settings
Northern America, United States of America
Wells Fargo, Finance and Insurance, Banking
2002-2016
Available Languages
English
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