企业品牌价值排行,中国企业品牌价值排行,世界900强品牌价值排行榜单,专业品牌价值评价平台-Why Does Wells Fargo Seem to Be Always Embroiled with a Series of Scandals? 品牌价值网_中国品牌价值排行榜
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Why Does Wells Fargo Seem to Be Always Embroiled with a Series of Scandals?

2022-11-11 08:53:28    Source:   www.bvrcn.com 品牌价值网

On Nov. 4, 2022, Wells Fargo, the fourth largest U.S. bank is required by United States Consumer Financial Protection Bureau (CFPB) to pay more than $1 billion fine to end its several federal charges. These charges include mortgage abuses, auto loan abuses, fake deposit accounts. Since September, 2016, Wells Fargo has been involved into some serious troubles, which caused Wells Fargo to pay multiple fines for multiple times. For several months in the year of 2022, Wells Fargo has been under scrutiny by Federal regulators. Most Americans cannot help but asking a question “why does Wells Fargo seem to be always embroiled with a series of scandals?”


          On September 29, 2016, Wells Fargo’s former CEO John Stumpf defended himself in Capitol Hill in Washington before the House Financial Services. He argued that Wells Fargo never directed nor wanted his team members to provide products and services their customers did not want. To simply put, the scandals was the work of a small minority of employees and some “bad apples” had been fired. His statement sounded reasonable at first thought, however, it did not hold any water at second thought because Wells Fargo had been engulfed in scandals for several times after 2016, including a $3 billion settlement in 2020 connected to illegal sales practices.

 

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          According to the news, some former employees of Wells Fargo offered a different explanation that a toxic high-pressure sales culture at Wells Fargo drove some people to do some wrong things such as cheating their customers and opening millions of fake accounts. The toxic high-pressure sales culture at Wells Fargo was cross sale, which meant every employee needed to sell at least 8 products a day, 20 products a day during a sales push.  The cross sales usually started at the morning meeting where sales managers pressed their workers to meet their "solution goals."  Each credit, each loan or each product was called a solution and workers were told to sell solutions, sell solutions all day long. Therefore, it’s not surprising to see some workers were cracking under the pressure as manifested by tears, crying, or getting pulled into the back room having one-on-one “coaching” sessions. During the “coaching” sessions, workers who did not meet their “solution goals” were given a “formal warning”, which meant they were told that they were not team members, might get fired and have a permanent bad record. Therefore, the pressure-cooker sales environment pressured some workers to deceive customers by breaking the rules to meet their “solution goals” because some workers, especially low-level workers were afraid of losing their jobs. In 2020, Charlie Scharf, the new CEO and President of Wells Fargo, admitted that Wells Fargo had a “flawed business model” and a structure and culture that "were problematic."

 

 According to Brand Value (ChinaNetwork,  Wells Fargo is still one of the “Big Four Banks” of United States, which also includes Citigroup, JP Morgan Chase & Co. and Bank of America. Charlie Scharf, the new CEO of Wells Fargo, will probably get Wells Fargo on the right back because he figured out the root cause of these scandals. Based on China Brand Value Evaluation Standard, Charlie Scharf’s practice of putting together an excellent executive team belongs to one of the most important dimensions called “high-level governance”.

 

On the ranking of “The 2nd Daguan· Keweiwei World Brand Value Top 900” released on January 13, 2022, Wells Fargo’s brand value was 187.245 billion RMB, ranking the 125th.

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Author:   杨瑞安

Views:   464862

   

   

   



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