Economic Force "Wells fargo Fraud case"

Unemployment

Monetary Policy

Fiscal Policy

Low level and control of money supply

Contractionary system

Corruptive market operations

the bank’s stock rose by 67%

Government penalties per $ 100 million

Open fake accounts

Increase interest rates

slow company growht

Fire employees

manages over $1.9 trillion in assets.

Credit Scores of customers were affected due to unpaid fees and unauthorized accounts

Government regulators taken control of sittuation 🚩

Wells Fargo agreed Friday to pay $3 billion to settle potential federal criminal and civil charges

Asset bubbles begin to form

Central banks monitoring consequences

Regulate cross selling practices

U.S Department of the treasury implement stricted auditories

It banned former chief executive John Stumpf from working in banking again and fined him $17.5 million

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

Company Performance

Work Labor

Reputation 🚩

High-pressure sales culture

High pressure targets

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

From 2006 to 2015” the bank’s stock rose by 67%

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