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Latvia: 678 81974

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    Sales strategy Wells Fargo inappropriate and harmful

    U.S. based bank Wells Fargo stops with its contentious sales strategy and associated targets. Thousands of the banks employees found a ‘loophole’ to meet the targets. Staff members opened over two million fake accounts or added uninvited services to existing customer accounts. Wells Fargo management told staff members a regular household used six financial services that should be raised to eight.

    Wells Fargo changed its sales strategy after the bank was fined for the amount of 185 million USD by the authorities for fraudulent sales transactions and had to settle for 5 million USD in compensation for duped customers.

    The bank had to fire 5.300 of its staff members and policy makers announced an investigation. Rating agency Moody’s states that the scandal possibly has a negative impact on the credit rating of Wells Fargo.

    Authorities placed the bank under a magnifier. Chairman and CEO John Strumpf is appointed to testify in congress. Politicians in Washington D.C. question the position of Strumpf, in particular after Strumpf tried to blame the low paid bank staff for the fraud. Strumpf returns over 41 million USD in bonusses due to the scandal.

    Aside from Strumpf, Carrie Tolstedt, who is reponsible for consumer banking at Wells Fargo, left the bank early. Tolstedt would have retired end of the year after a 27 year employment term. She renounced her bonus of 19 million USD in stocks.

    Contact:

    LEGAL FLORIS LLC – 5783431

    Telephone:
    001 646 513 2855 – USA
    00371 678 81974 – Latvia
    00357 25 057 544 – Cyprus
    00352 20 301970 – Luxembourg

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    Registered office:
    1013 Centre Rd. Suite 403-A
    Wilmington, 19805
    Delaware – USA

    Cyprus office:
    Kitiou Kyprianou street 31
    3036 Limassol – Cyprus

    Postal address:
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    3605 Limassol – Cyprus

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