Banks and other financial institutions aim to make a profit. To do so, the likes of Wells Fargo may go to extreme lengths, and get fined for it afterward.
Earlier this week, Wells Fargo received a hefty $3 billion fine.
The Dark Side of Wells Fargo
According to the US government, the bank committed fraudulent sales practices over the course of 15 years.
Misbehavior includes forging customer signatures, moving money to unauthorized accounts, and misusing personal client information.
This further goes to show how little one can trust banks such as Wells Fargo in the modern age.
The fine of $3 billion seemingly doesn’t cover the harm and problems the bank has caused to its customers.
For the DOJ, this amount seems more than sufficient to send a clear warning to this institution.
In their opinion, Wells Fargo collected millions of dollars in fees to which the company was not entitled.
Although no customer funds were impacted in a negative manner as a result, this approach could have easily backfired.
Wells Fargo officials also admitted to using illegal sales practices since 1998.
It appears that those strategies were put to bed by 2016.
Utilizing these “gaming strategies” by forging customer signatures to open new accounts and issue debit cards is a very problematic situation in the financial industry.