Monday, September 12, 2016
What does it say about a bank that it cannot control its employees better than this? Wells Fargo, one of the leading and some say the leading, bank in the US has fired more than 5,000 employees for fraudulent credit card dealings. The bank is paying a steep fine, and that is the least of its bad PR. It needs to redo its incentive compensation plan, the source of the fraud, and it needs better supervision over its credit card operations. One wonders how more than two million phony debit and credit card accounts could have been opened without that bank being aware of it. Clearly, there was a management breakdown of major proportions. Wells Fargo had a good reputation before this incident. Now it has to work hard to get back to where it was.