Case summary: RK had a solution for the challenge faced by retail banks which is to sell money. He suggested that cross-selling should be done. N bank got merged with WF bank and RK became the President and CEO of WF bank. The most important goal according to him was revenue growth and it can be achieved by cross-selling. Bankers were given targets and bonuses for better selling. The bank’s stocks saw a 67% increase from this transformation. This culture however created a lot more pressure on bankers. When problems started to emerge, RK was not the President and JS was the President. When the problem was investigated, rogue bankers were found and hence they were fired. The WF bank was fined by OCC for opening fraud accounts for which WF bank blamed the employees and not the culture. However, the inside story was different as employees told that due to immense pressure all this fraud happened and somehow bank was aware of this. When JS resigned, TS became CEO, and he removed the label of stores from banks and changed the incentive plans. The focus was now customer satisfaction and sales goals were also reduced. However, other scandals did happen in banks that were charging many customers for insurance who were taking car loans. The bank suffered a loss in reputation and ranking. Also, many penalties were charged.
To explain:The role played by the bank’s executive leadership in the frauds of RSP and auto insurance.
Want to see the full answer?
Check out a sample textbook solutionChapter 8 Solutions
Gen Combo Looseleaf Management; Connect Access Card
- Make comprehensive use of the BDN model to “strategically sell” a RPA system to the investment executive committee?arrow_forwardWhat is private ownership of government programs is known as? Multiple Choice O proxy government privatization Oshadow bureaucracy All of the answers are correct.arrow_forwardIn response to the 2007 financial crisis, the US government stepped in with the infamous bailout and the enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act. Was the bailout ethical? Was the subsequent enactment of law an ethical "fix" to prevent a similar financial crisis in the future? Do laws change morals and/or actions?arrow_forward
- When we consider the themes in the movies “Too big to fail” and “The big short”, can we honestly believe that what is articulated as the objectives of any financial regulator in any jurisdiction? You are required as follows: An overview of the financial regulations in your jurisdiction or the USA. Why do think, based on your research, the financial regulations governing the banking sector and most importantly mortgage-backed asset, did not prevent or alleviated the financial collapse in 2008/9? Critically discuss? The financial regulations in the USA and other Developed Countries that preceded the 2008/9 financial collapse; was it successful in the treatment of issues flowing out of the 2008/9 collapse? Critically discuss. Is Financial Regulations and rules of Governance really important in the contemporary world after 2009? Critically discuss.…arrow_forwardDo you support the views that much more can be done by successive governments to curb the levels of corruption within the public sector?3arrow_forwardIs the failure of Citigroup different from that of other firms? Does the government have people to manage such a global financial enterprise?arrow_forward
- How long has apple been in business? Is its management experienced? Has management been successful in the past? Have they ever made money for investors before?arrow_forwardTo what extent do you think competition led to the Volkswagen scandal?arrow_forwardPick one of Porter's Five Forces and describe its key attributes. Provide an example of when this force was particularly strong in a given situation Is the force you selected stronger or weaker in highly dynamic markets? Why? What effect can government regulation have on each of these forces in your own country?arrow_forward
- How John Stuart Mill viewed wealth, what constitutes it and how can it be attained? What are the differences and similarity of John Stuart Mill with other Classical Economists?arrow_forwardWhat is the Post-Keynesians policy response to the 2008 global financial crisis?arrow_forwardIndicate actions that must be done in addressing a company's declining cash position. You may research the internet about contingency funding plans. Give 3 answers for the following grouped items. 1. Specific Action: Persons Responsible: Effect on Cash Balance:arrow_forward
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON