[Music] we know that money doesn’t grow on trees
we know that money doesn’t grow on trees
we know that money doesn’t grow on trees but Wells Fargo customers have found
but Wells Fargo customers have found
but Wells Fargo customers have found that bank accounts do appear out of
that bank accounts do appear out of
that bank accounts do appear out of nowhere it’s a bank right they’re
nowhere it’s a bank right they’re
nowhere it’s a bank right they’re supposed to keep track of people’s money
supposed to keep track of people’s money
supposed to keep track of people’s money safety security welcome to watchmojo.com
down five crucial facts you should know
down five crucial facts you should know about the Wells Fargo account scandal if
about the Wells Fargo account scandal if
about the Wells Fargo account scandal if they really didn’t know then that tells
they really didn’t know then that tells
they really didn’t know then that tells me this is a bank that is simply too big
me this is a bank that is simply too big
me this is a bank that is simply too big to manage number five what is Wells
to manage number five what is Wells
to manage number five what is Wells Fargo Wells Fargo is considered one of
Fargo Wells Fargo is considered one of
Fargo Wells Fargo is considered one of the big four banks in the United States
the big four banks in the United States
the big four banks in the United States along with JPMorgan Chase Bank of
along with JPMorgan Chase Bank of
along with JPMorgan Chase Bank of America and Citigroup according to rel
America and Citigroup according to rel
America and Citigroup according to rel banks Wells Fargo was the largest bank
banks Wells Fargo was the largest bank
banks Wells Fargo was the largest bank in the world in 2015 in terms of market
in the world in 2015 in terms of market
in the world in 2015 in terms of market cap operating in 35 countries and
cap operating in 35 countries and
cap operating in 35 countries and serving over 70 million customers
serving over 70 million customers
serving over 70 million customers worldwide
worldwide
worldwide in fact Wells Fargo was ranked as the
in fact Wells Fargo was ranked as the
in fact Wells Fargo was ranked as the seventh largest public company on the
seventh largest public company on the
seventh largest public company on the planet by Forbes in 2016 the bank which
planet by Forbes in 2016 the bank which
planet by Forbes in 2016 the bank which today is headquartered in San Francisco
today is headquartered in San Francisco
today is headquartered in San Francisco has its origins in the mid 19th century
has its origins in the mid 19th century
has its origins in the mid 19th century gold rush it was founded by Henry Wells
gold rush it was founded by Henry Wells
gold rush it was founded by Henry Wells and William Fargo who were also part
and William Fargo who were also part
and William Fargo who were also part founders of American Express in 1852 in
founders of American Express in 1852 in
founders of American Express in 1852 in its early years Wells Fargo was one of
its early years Wells Fargo was one of
its early years Wells Fargo was one of the few banks to survive the panic of
the few banks to survive the panic of
the few banks to survive the panic of 1857 which saw a collapse in the banking
1857 which saw a collapse in the banking
1857 which saw a collapse in the banking system in recent years a series of
system in recent years a series of
system in recent years a series of controversies has dogged the brand
controversies has dogged the brand
controversies has dogged the brand including fines for overdraft issues
including fines for overdraft issues
including fines for overdraft issues administered in 2010 allegations of
administered in 2010 allegations of
administered in 2010 allegations of racial discrimination in 2011 inadequate
racial discrimination in 2011 inadequate
racial discrimination in 2011 inadequate risk disclosures in 2012 and violations
risk disclosures in 2012 and violations
risk disclosures in 2012 and violations of New York credit card rules in 2015 as
of New York credit card rules in 2015 as
of New York credit card rules in 2015 as well as high-profile revelations in 2014
well as high-profile revelations in 2014
well as high-profile revelations in 2014 surrounding the earnings of executive
surrounding the earnings of executive
surrounding the earnings of executive figures number four how was the fraud
figures number four how was the fraud
figures number four how was the fraud committed in September 2016 it was
committed in September 2016 it was
committed in September 2016 it was revealed that employees at Wells Fargo
revealed that employees at Wells Fargo
revealed that employees at Wells Fargo had been covertly creating and operating
had been covertly creating and operating
had been covertly creating and operating extra bank accounts without customer
extra bank accounts without customer
extra bank accounts without customer authorization an investigation found
authorization an investigation found
authorization an investigation found that at least one and a half million
that at least one and a half million
that at least one and a half million bogus accounts and over half a million
bogus accounts and over half a million
bogus accounts and over half a million credit cards had been open
credit cards had been open
credit cards had been open since 2011 without customers knowledge
since 2011 without customers knowledge
since 2011 without customers knowledge the fraud was committed as a means of
the fraud was committed as a means of
the fraud was committed as a means of not only making more money for the bank
not only making more money for the bank
not only making more money for the bank but more importantly to boost sales
but more importantly to boost sales
but more importantly to boost sales figures so that employees involved could
figures so that employees involved could
figures so that employees involved could reach quotas and qualify for incentive
reach quotas and qualify for incentive
reach quotas and qualify for incentive bonuses it’s reported that in some
bonuses it’s reported that in some
bonuses it’s reported that in some instances fake PIN numbers and email
instances fake PIN numbers and email
instances fake PIN numbers and email addresses were used in order to sign
addresses were used in order to sign
addresses were used in order to sign customers up for services without their
customers up for services without their
customers up for services without their knowledge Wells Fargo has taken
knowledge Wells Fargo has taken
knowledge Wells Fargo has taken responsibility for the problem which has
responsibility for the problem which has
responsibility for the problem which has been blamed by some critics on the
been blamed by some critics on the
been blamed by some critics on the incentives given to employees and also
incentives given to employees and also
incentives given to employees and also seemingly results from inadequate
seemingly results from inadequate
seemingly results from inadequate monitoring checks and control procedures
monitoring checks and control procedures
monitoring checks and control procedures either they knew or they didn’t know
either they knew or they didn’t know
either they knew or they didn’t know in which case how can you run a giant
in which case how can you run a giant
in which case how can you run a giant multinational bank the bank has been hit
multinational bank the bank has been hit
multinational bank the bank has been hit with 185 million dollars in fines 100
with 185 million dollars in fines 100
with 185 million dollars in fines 100 million dollars of which goes to the
million dollars of which goes to the
million dollars of which goes to the Consumer Financial Protection Bureau
Consumer Financial Protection Bureau
Consumer Financial Protection Bureau civil penalty fund and it’s been ordered
civil penalty fund and it’s been ordered
civil penalty fund and it’s been ordered to pay a further five million dollars as
to pay a further five million dollars as
to pay a further five million dollars as compensation to the customers affected
compensation to the customers affected
compensation to the customers affected number three how did the scandal affect
number three how did the scandal affect
number three how did the scandal affect customers in many cases the extra
customers in many cases the extra
customers in many cases the extra accounts initially went unnoticed or
accounts initially went unnoticed or
accounts initially went unnoticed or unquestioned by customers small amounts
unquestioned by customers small amounts
unquestioned by customers small amounts of money were typically transferred from
of money were typically transferred from
of money were typically transferred from an existing account when the fraudulent
an existing account when the fraudulent
an existing account when the fraudulent new one was opened a transaction that
new one was opened a transaction that
new one was opened a transaction that didn’t always draw attention as some
didn’t always draw attention as some
didn’t always draw attention as some phony accounts were then closed within
phony accounts were then closed within
phony accounts were then closed within weeks customers remained unaware that an
weeks customers remained unaware that an
weeks customers remained unaware that an extra product had ever been added
extra product had ever been added
extra product had ever been added however many people found themselves
however many people found themselves
however many people found themselves receiving credit or debit cards in the
receiving credit or debit cards in the
receiving credit or debit cards in the mail which they hadn’t asked for and
mail which they hadn’t asked for and
mail which they hadn’t asked for and being charged fees for accounts they had
being charged fees for accounts they had
being charged fees for accounts they had no idea existed in some extreme
no idea existed in some extreme
no idea existed in some extreme circumstances it’s reported that
circumstances it’s reported that
circumstances it’s reported that customers were contacted by debt
customers were contacted by debt
customers were contacted by debt collection agencies in relation to
collection agencies in relation to
collection agencies in relation to outstanding fees on unrecognized
outstanding fees on unrecognized
outstanding fees on unrecognized accounts analysts suggest that the dupe
accounts analysts suggest that the dupe
accounts analysts suggest that the dupe was made easier thanks to Wells Fargo’s
was made easier thanks to Wells Fargo’s
was made easier thanks to Wells Fargo’s long-established reputation for cross
long-established reputation for cross
long-established reputation for cross selling to existing customers the
selling to existing customers the
selling to existing customers the company looks after banking loans
company looks after banking loans
company looks after banking loans mortgages and credit cards and
mortgages and credit cards and
mortgages and credit cards and reportedly places focus on selling
reportedly places focus on selling
reportedly places focus on selling additional services to customers they
additional services to customers they
additional services to customers they already have rather than capturing
already have rather than capturing
already have rather than capturing brand-new clients
brand-new clients
brand-new clients number two what has wells-fargo done to
number two what has wells-fargo done to
number two what has wells-fargo done to fix the problem
fix the problem
fix the problem though the bank has neither admitted nor
though the bank has neither admitted nor
though the bank has neither admitted nor denied the accusations Wells Fargo has
denied the accusations Wells Fargo has
denied the accusations Wells Fargo has agreed to pay the fines and is expected
agreed to pay the fines and is expected
agreed to pay the fines and is expected to change sales practices and incentive
to change sales practices and incentive
to change sales practices and incentive structures as a result at least 5300
structures as a result at least 5300
structures as a result at least 5300 employees have been fired since 2011 for
employees have been fired since 2011 for
employees have been fired since 2011 for quote inappropriate sales conduct in
quote inappropriate sales conduct in
quote inappropriate sales conduct in relation to the scandal and Wells Fargo
relation to the scandal and Wells Fargo
relation to the scandal and Wells Fargo has promised to assume greater control
has promised to assume greater control
has promised to assume greater control over and monitoring of customer service
over and monitoring of customer service
over and monitoring of customer service in a memo sent to employees on September
in a memo sent to employees on September
in a memo sent to employees on September 8th 2016 the firm said when it makes
8th 2016 the firm said when it makes
8th 2016 the firm said when it makes mistakes it is quote open about them and
mistakes it is quote open about them and
mistakes it is quote open about them and also confirmed that it would quote take
also confirmed that it would quote take
also confirmed that it would quote take action Wells Fargo has also begun
action Wells Fargo has also begun
action Wells Fargo has also begun repaying all customers involved
repaying all customers involved
repaying all customers involved reporting that five million dollars is
reporting that five million dollars is
reporting that five million dollars is earmarked for remediation with 2.6
earmarked for remediation with 2.6
earmarked for remediation with 2.6 million already paid out the average
million already paid out the average
million already paid out the average payment per customer is $25 the bank has
payment per customer is $25 the bank has
payment per customer is $25 the bank has also stressed that it has refunded or
also stressed that it has refunded or
also stressed that it has refunded or will refund any account where there is
will refund any account where there is
will refund any account where there is the slightest suggestion of foul play
the slightest suggestion of foul play
the slightest suggestion of foul play implying that summary payments have been
implying that summary payments have been
implying that summary payments have been made for accounts that actually were
made for accounts that actually were
made for accounts that actually were properly authorized number one what’s
properly authorized number one what’s
properly authorized number one what’s next for Wells Fargo and banking in
next for Wells Fargo and banking in
next for Wells Fargo and banking in America as one of the world’s largest
America as one of the world’s largest
America as one of the world’s largest banks at the center of a high-profile
banks at the center of a high-profile
banks at the center of a high-profile scandal Wells Fargo is set for a
scandal Wells Fargo is set for a
scandal Wells Fargo is set for a difficult period as trust in the company
difficult period as trust in the company
difficult period as trust in the company has waned however customers and analysts
has waned however customers and analysts
has waned however customers and analysts are already using it as a case study for
are already using it as a case study for
are already using it as a case study for problems with the US banking system in
problems with the US banking system in
problems with the US banking system in general in the wake of the account
general in the wake of the account
general in the wake of the account scandal Wells Fargo employees have
scandal Wells Fargo employees have
scandal Wells Fargo employees have reportedly argued that mounting pressure
reportedly argued that mounting pressure
reportedly argued that mounting pressure to meet sales targets is reason for the
to meet sales targets is reason for the
to meet sales targets is reason for the false accounts so as long as the banks
false accounts so as long as the banks
false accounts so as long as the banks are expected to grow it’s estimated that
are expected to grow it’s estimated that
are expected to grow it’s estimated that similar issues could continue to arise
similar issues could continue to arise
similar issues could continue to arise on the one hand banks face
on the one hand banks face
on the one hand banks face ever-increasing target figures on the
ever-increasing target figures on the
ever-increasing target figures on the other there are fewer and fewer people
other there are fewer and fewer people
other there are fewer and fewer people to sell to which is why firms often look
to sell to which is why firms often look
to sell to which is why firms often look to make more money out of the customers
to make more money out of the customers
to make more money out of the customers they already have this problem doesn’t
they already have this problem doesn’t
they already have this problem doesn’t excuse Wells Fargo’s underhanded tactics
excuse Wells Fargo’s underhanded tactics
excuse Wells Fargo’s underhanded tactics but it does help explain the scandal as
but it does help explain the scandal as
but it does help explain the scandal as individual refunds remain relatively low
individual refunds remain relatively low
individual refunds remain relatively low perhaps the most shocking aspect of this
perhaps the most shocking aspect of this
perhaps the most shocking aspect of this story is that over 5,000 individual
story is that over 5,000 individual
story is that over 5,000 individual employees were prepared to con customers
employees were prepared to con customers
employees were prepared to con customers and participate in fraud with some
and participate in fraud with some
and participate in fraud with some sources reporting that as many as 2
sources reporting that as many as 2
sources reporting that as many as 2 million fake accounts were created what
million fake accounts were created what
million fake accounts were created what happened at Wells Fargo reflects
happened at Wells Fargo reflects
happened at Wells Fargo reflects company-wide malpractice and has
company-wide malpractice and has
company-wide malpractice and has industry-wide implications did these
industry-wide implications did these
industry-wide implications did these facts get you thinking I bet a lot of
facts get you thinking I bet a lot of
facts get you thinking I bet a lot of people out there are wondering this
people out there are wondering this
people out there are wondering this morning how do I get my money back to
morning how do I get my money back to
morning how do I get my money back to vote for which news story is covered
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for more newsworthy top 10s published
for more newsworthy top 10s published every week this was illegal this was
every week this was illegal this was
every week this was illegal this was wrong this was flatly wrong
wrong this was flatly wrong
wrong this was flatly wrong [Music]
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