Step One: Identify and define the problem
• Wells Fargo, one of the largest banks in the United States was recently fined $185 million because of a widespread scheme that employees created to collect fees and hit sales targets. These employees opened up over 1.5 million deposit accounts that were reported to be not authorized by customers. This scheme has been going on since 2011 without any acknowledgment until recently when customers were being charged with overdraft fees and insufficient funds.
Step Two: Analyze the problem
• The problem to be analyzed here is exactly why the employees were doing what they did based on the serious legal consequences. The 5,300 employees that were involved in the fraudulent practice opened up over 1.5 million deposit accounts. The employees moved funds from customer’s accounts into new accounts and also submitted 565,443 credit card applications without their consent. Within those credit card accounts roughly $400,000 in fees were being charged to these customers due to insufficient funds, over draft fees. They would create fake PIN numbers and fake emails to enroll current
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Wells Fargo also stated that they fired all employees over the years that had anything to do with the phony accounts. This left 5,300 without a job after the investigation. After this company caused such a conflict and conducted fraud, many current customers have lost trust and discontinued their services with the company. Wells Fargo takes full responsibility for this and stated that they are open about it and when they make mistake they take action about it. In addition to the agreed upon solution- all banks need to start taking action and monitor their systems frequency to be able to stop such problems like such before it occurs. This scam went on for way longer than it should have. It could have been stopped a lot sooner
Wells Fargo has been in business for over 160 years and was founded on March 18, 1852, by Henry Wells and William Fargo. The company opened its first office, in San Francisco, on July 1852. Wells Fargo served the West with banking needs, which included gold and paper bank drafts, and offered quick delivery of gold or other valuables. In1855, the first of many financial dilemmas took place when a drought made it impossible to mine for gold, and this caused almost 200 businesses in San Francisco to fail, but Wells Fargo didn’t fail, they prospered. In the early1860s, Wells Fargo acquired almost all the stage lines from the Missouri River to California, giving them a monopoly on transcontinental delivery services.
Summary of Facts Herman informs Amador that Linda has not reported, to work that evening, the evening before or on several other evenings during the prior few weeks. As a result of this discussion, Amador learns that Linda was spending the evenings with her ex-boyfriend. Several days later, Amador commits suicide. Amador’s family sues the bank for invasion of privacy, alleging that Herman did not have the right to inform Amador that Linda had not reported for work Issues 1. Does the plaintiff have the right to sue the bank for wrongful death or for the violation of the invasion of privacy.
Today, Wells Fargo is widely recognized for its commitment to the Hispanic and Latino community. This commitment however, is not a recent phenomenon and dates back to before the turn of the century. Since its founding in 1852, Wells Fargo had encouraged team members to treat all customers with courtesy and respect. The once informal policy became company standard in 1888 when agents and managers were required to show “proper respect to all. Let them be men, women, children, rich or poor, white or black…”
1) -During the Great Recession Wells Fargo targeted black people and convinced them to take out subprime loans. Such actions lead to the result of Wells Fargo being sued in 2010 for discrimination and a year later settling the suit paying more than 174 million. -The early economy was built on slave labor. Not only did slaves build the Capitol building, but they built the White House too.
“The most polite and gentlemanly treatment of all customers, however insignificant in their business, is insisted upon. Proper respect must be shown to all- let them be men, women, or children, rich or poor, white or black- it must not be forgotten that the company is dependant on these same people for its business.” When Henry Wells was alive, there were 8,000 workers at Wells Fargo. Today, there are 150,000 or more employees at Wells Fargo. There are 6,000 branches and from 1990-1998, their stock went up 1,197% (Smith).
What was The Second Bank of America? Why was it such a huge deal in American history? Who supported it, and who did not? Why did it fail? This essay will help explain the answer to each of these questions about the Second Bank of America, or how it was more commonly called, The Bank of the United States, and will inform you of what is used for today.
As all this came to fruition, the bank was penalized with $185 million dollars in fines and other penalties by county and federal organizations (Blake, 2016). On top of getting slapped with millions of dollars worth of fines, Wells Fargo fired 5,300 employees that may have been involved in the scandal (Blake, 2016). Some of Wells Fargo’s top executives where asked to step down in court proceedings as well as in other meetings with federal agencies. There have also been several lawsuits filed against Wells Fargo by customers and former employees of the company that feel that they were wronged and bombarded with threats. Thankfully, this scandal did not affect most of Wells Fargo’s clients.
The terrorist attacks on our country that occurred on September 11, 2001 were, without a doubt, the most horrific and deadly in our history. In the aftermath of these attacks, the United States Congress moved quickly to pass legislation that untied the hands of law enforcement in an effort to make investigating terrorist organizations easier. On October 26, 2001, a mere 45 days after the 9/11 tragedy, Congress passed the USAPATRIOT (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism) Act. The overall purpose of the USA PATRIOT Act was: “To deter and punish terrorist acts in the United States and around the world, to enhance law enforcement investigatory tools, and for other purposes
Wells Fargo’s “Gutless Leadership” Wells Fargo is one of the largest banks in the United States, with “…more than 8,600 locations [and] 13,000 ATMs” (Wells Fargo Today). Millions of Americans trust them with their finances. However, after a federal investigation, Wells Fargo has admitted to opening up to two million accounts without customers’ permission. While this had financial implications for many customers, this scandal most heavily affected Wells Fargo’s low-level employees.
Eileen Foster was the Executive Vice President of Fraud Risk Management at Countrywide, and later served in the role of Senior Vice President of the Mortgage Fraud Investigation Division at Bank of America after the two companies merged (Foster, n.d.). It was her responsibility to investigate mortgage origination fraud and reporting suspicious activity to regulators and the company’s Board of Directors. After several years of seeing a lot of suspicious activity and blatant acts of fraud she found that the company was playing party to this activity. Any employee who reported fraud and wrongdoing to Employee Relations were being transferred, demoted, harassed or terminated. When Foster reported her concerns to Countrywide’s Internal audit to investigate, the company not only chose to conceal her allegations from Bank of America, but it also directed employee relations to investigate Foster for wrong doing.
BA 670 Week 7 Business Analytics Research Paper JoAnn Calderon Brenau University Abstract Business analytics is used by firms that are dedicated to using data when making decisions for the organization. Business analytics is primarily used to help companies obtain an understanding of information gathered to make business decisions that can be applied to the automation and optimization of its business processes. Business analytics can be placed into three categories: descriptive analytics, predictive analytics and prescriptive analytics.
Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.
When it comes to the Ethical Decision Model, it does not just pertain to the employees who opened these accounts but also leadership who either failed to realize what was going on or decided to sweep it under the rug by just covertly firing some employees. Wells Fargo did take the first step in recognizing the problem but failed to define it, which explains why these unethical behaviors continued for so many years. When the corporation was initially aware of what was going on, they should have acted immediately and strategized a solution that would dilute the possibility of it occurring again. Instead of defining the problem, which would have foster, a proper solution but company decided to just terminate
The then CEO John Stumpf was forced to resign following insurmountable political and public pressure. Federal prosecutors also issued subpoenas and congressional hearings were held, for which then CEO John Stumpf attended. Additionally, on February 21, 2017, Wells Fargo terminated four high level executives involved in the scandalous news. The SEC’s investigation consists of warrants against bank executives for possible violations of GAAP principles and the Sarbanes-Oxley Act for inaccurate accounting practices. The SEC will probe possible violations of employee whistleblowing protection under the Sarbanes-Oxley and Frank-Dodson Act.
Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.