He agreed with you. However it might be reasonable to quantify the "monstrous fraud and scandal. " Anyone know what each customer lost. Anyone know how much each loss was paid in full? This was built into a headline grabbing crisis by the lazy media and the demagogues on the congressional committee. When fully detailed they will look like fools but of course will have moved on searching for Breaking News and Wells will have been spanked for not knowing how To manage this kind of event. Meanwhile, the stock will recover and move on. Probably a buy right now. Watch for the rest of the industry to be frisked for fines.
News flash. Cross selling has been a standard banking sales practice for decades at ALL BANKS.
1. There will always be a small percent of employees who find ways to meet goals without actually following guidelines.
2. Because Wells is a huge bank both the annual number of employees caught and fired and the total amount refunded to customers to compensate their loss appears to be very large numbers when presented as a five year total. In reality it is a tiny percent of both total retail employees and the cost of remediation is a rounding error in WFC's total annual profits.
3. That is exactly why it was handled far below the BOD and top management level.
4 This was known.years ago by the regulators who deemed it a minor problem that was being addressed.
5 That there would be fines and reviews of increased remedial action required was known and accrued long ago .
Wells is guilty of not recognizing this as a reputational negative earlier.
The medias limited financial understanding of this industry practice and the desire for attention and headlines has been exceeded only by the headline seeking Senate committee who fell all over each other to make this a national crisis and gain populist votes and face time as demagogues always do. In fact this incident was old news until recently when the media and politicians blew it into a major fraud and scandal. That created the recent decline in the share price. As WFC addresses this media frenzy and makes corrective action the/share price will continue to rise. What the pols are hoping to do is fine the industry and create a new source of revenue for the agencies as they can easily extend this to all the larger banks.