The bad news just keeps coming. Not only did Wells Fargo open millions of unauthorized accounts for customers — 1.4 million more than they originally disclosed — new revelations show that Wells Fargo also forced unnecessary collision insurance on 800,000 consumers. And now the bank’s mortgage arm has come under fire for changing loan terms, falsifying records and stealing from mortgage bond investors.
Wells Fargo right now looks like the poster child for everything that is wrong with the financial services industry. Will they survive? Most likely, yes. But the bank sure isn’t making it easy on itself, as the laundry list of fraudulent activities and shady dealings grows. As the third largest financial institution in the U.S., the bank is probably too big to fail, as the expression goes. But they’ve severely damaged their once-venerated brand, and it will be a long, hard slog for Wells Fargo before it can rebuild its reputation .
The List of Mistakes Keeps Growing
In November of last year, when Warren Buffet heard about the massive cross-selling scandal that Wells Fargo had created, he said they were “a great bank that made a terrible mistake.”continue reading »