drew hinck: business ethics presentation

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by Drew Hinck0 views·Updated Apr 19, 2021
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  1. My name is Drew Hink and this is my business
  2. ethics presentation.
  3. I'm going to be talking about Wells Fargo, the banking
  4. scandal of 2016.
  5. Um, Wells Fargo started out as an express delivery service
  6. in the mid 1800s and They established an express network
  7. across the United States that they ran until about 1918.
  8. The federal government took over that express network and left
  9. Wells Fargo with just one bank in san Francisco.
  10. So I turned that bank into a powerful West Coast
  11. institution and eventually they expanded across the United States um
  12. through leadership and ingenuity, banking innovation.
  13. And by the early 21st century, they were a worldwide
  14. financial institution.
  15. So that kind of brings us up to the actual
  16. controversy so that The scandal itself took place from 2011
  17. to 2016.
  18. At that time, customers began noticing strange fees associated with
  19. accounts that they didn't even realize they had in their
  20. names. At the same time, the sales for Wells Fargo
  21. was increasing and banking regulatory institutions began looking into this
  22. and they found massive fraud inside of Wells Fargo, uh
  23. huh. It turned out that The employees of Wells Fargo
  24. had opened over two million unauthorized accounts and more than
  25. 565,000 fraudulent credit cards in their customers names.
  26. They committed this fraud mainly to reach sales bonus goals
  27. and to allow the company to collect fees on all
  28. those unauthorized accounts.
  29. Yeah. Um, once this was exposed, there was some immediate
  30. fallout and there were also some long term lasting effects.
  31. Some of the immediate fallout was $185 million wells Fargo
  32. had to pay $5 million dollars in customer refunds.
  33. On top of that, 5300 employees were fired, including uh,
  34. the man who's pictured, there's their Ceo at the time,
  35. john strumpf and additionally, they also are still dealing with
  36. over $2.5 billion in additional lawsuits and continuing legal issues
  37. for employees and executives that were involved in the scandal
  38. since that time.
  39. Um As you can see in in 2018, they kind
  40. of started a new slogan of Established 181,550 to re
  41. establish 2018 and this is an attempt to regain the
  42. trust of their customers.
  43. In 2016, they were the highest value bank in the
  44. United States, another third, Which I guess it's still pretty
  45. good. But in 2016 they were actually, we're more valuable
  46. than they are today.
  47. So they have continued to decline since that point, since
  48. the scandal broke.
  49. I think that the customer trust loss is going to
  50. be permanent because this wasn't just one or two rogue
  51. employees. This was 5300 employees plus the Ceo, which kind
  52. of points to a a culture at Wells Fargo that
  53. prioritizes money over anything else.
  54. And they're using, they're willing to uh, to use fraud
  55. in order to make the money that they, that they
  56. want in order to push their own numbers.
  57. Um Well, I think once they decided that money was
  58. the most important thing to them, they lost all that
  59. trust from the customers, and I don't think they'll ever
  60. be able to get that back.
  61. Yeah, that's my presentation.
  62. Thank you.