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Economic Force "Wells fargo Fraud case" - Coggle Diagram
Economic Force "Wells fargo Fraud case"
Unemployment
Company Performance
From 2006 to 2015” the bank’s stock rose by 67%
Work Labor
High-pressure sales culture
High pressure targets
Reputation
:red_flag:
The bank fired 5,300 mostly lower-level workers over their wrong doing
Wells Fargo fired thousands of employees for fraudulent actions in responding to complaints from customers
HR functions, and the leaders of those departments in the business units now report to their corporate
chiefs without even a dotted line to the business unit head
Vast risk-control bureaucray into ethics office and boards risk commitment
Monetary Policy
Low level and control of money supply
manages over $1.9 trillion in assets.
Credit Scores of customers were affected due to unpaid fees and unauthorized accounts
Central banks monitoring consequences
Contractionary system
Increase interest rates
slow company growht
Fire employees
Corruptive market operations
the bank’s stock rose by 67%
Government penalties per $ 100 million
Open fake accounts
Fiscal Policy
Government regulators taken control of sittuation
:red_flag:
Regulate cross selling practices
U.S Department of the treasury implement stricted auditories
Wells Fargo agreed Friday to pay $3 billion to settle potential federal criminal and civil charges
It banned former chief executive John Stumpf from working in banking again and fined him $17.5 million
Asset bubbles begin to form
Of the 2 million potentially unauthorized accounts, only 115,000 incurred fees; those fees totaled $2.6 million, or an average of $25 per account