In wake of Wells Fargo most recent bank scandal of opening fake accounts to increase the company’s revenue, the CEO John Stumpf has resigned.
According to a news release from mid-Sepetember, Wells Fargo said it would eliminate all product sales goals in retail banking, effective January 1, 2017.
“Our objective has always been and continues to be to meet our customers’ financial needs and drive customer satisfaction,” said Wells Fargo CEO John Stumpf in the September release. “We are eliminating product sales goals because we want to make certain our customers have full confidence that our retail bankers are always focused on the best interests of customers.”
California and federal regulators fined Wells Fargo a combined $185 million as a result of the scandal, which cost 5,300 bank employees their jobs.
According to the Consumer Financial Protection Bureau, the bank’s sales staff had not only opened millions of new accounts, but they also transferred money from customers’ other accounts without authorization. Even debit cards were issued and activated — and PINs created — without customers knowing anything about it.
In a statement released at the time of the scandal, Wells Fargo said: “We regret and take responsibility for any instances where customers may have received a product that they did not request.”
This article includes information from clarkhoward.com