Wells Fargo Compliance Failure

documents. Bank of America and four other banks reached a $25 billion landmark settlement with

On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.

The Obama administration on Thursday revealed that 21.5 million people were swept up in a colossal breach of government computer systems that was far more damaging than initially thought, resulting in the theft of a vast trove of personal information, including Social Security numbers and some

I responded to Wells Fargo in reference to a juvenile problem. Upon arrival, I made contact with Kimberly Bradley. Kimberly advised that her 10 year old daughter(Thomiya Bradley) ran down to Sunny Beauty Supply without her permission. Upon my arrival, Thomiya pulled back up with her sister. Thomiya was gicen advice about the consequence that could happen if she keeps being disobedient.

There was a dismissal of 5,300 employees and $185 million in fines against Wells Fargo (Stewart, 2017). The bank’s pressure-cooker sales environment made a toxic sales culture. Wells Fargo held unrealistic sale quotas to its employees and held policies that drove employees to participate in illegal behaviors to meet unreachable goals. Employees opened millions of unauthorized credit cards and deposit accounts, fees and other charges were racked up, money was transferred from customers’ accounts without their knowledge and their permission, they also created phony email addresses to enroll customers in online banking services, all to hit sale targets and receive bonuses. Employees who called attention to the abusive, fraudulent behaviors were ignored and wrongfully terminated and retaliated

Wells Fargo had said that they open 1.4 million fake accounts but eventually it went up to 3.5 million fake accounts. Those accounts weren’t use by the customers. Wells Fargo company discovered that their employees were the reason behind the scandal by using unauthorized credit card and bank accounts from customers who wasn’t activity using them. Wells Fargo realize that this problem was dating back since the early 2000’s. Wells Fargo also had another scandal that involved 570,000 auto loan customers who were charged with insurance that they didn’t use which eventually resulted in repossessing cars of those customers. Wells Fargo was fined for 185 million dollars after Wells Fargo said that the employees had opened fake accounts. Wells

JP Morgan is the largest bank in the US with over $2.5 trillion in assets. The bank made it known via an SEC 8-K filing that the breach affected 76 million households and 7 million small businesses. They confirmed that contact information of customers was compromised in the breach including name, address, phone number and email addresses. They indicated that internal JP Morgan information pertaining to customers such as credit cards and various investment products, was also accessed by parties

The ethics of the bank requires that there is ethics of integrity. It is supposed to be created through a culture in the bank and it should be one of the banks priorities because this is a business and they gain the profits from the people they serve on daily basis. Even if the bank shall survive this wave of scandal is so difficult now to convince any client to join this Wells Fargo which shall cause them a lot of money. Also all the old customers may start withdrawing and looking for other banks which they feel are more secure when they are keeping the money for them. It is so hurting and distrustful for a banking instead of accruing money in the accounts of their customers what they wells was doing was that it was misusing their money and giving them extra fees.

In the former case, BlackRock and the conpnay Chief Compliance Officer at the time paid penalty charges amounting to $12 million and $25,000 respectively. In the latter case, SFX paid $150,000, while its Chief Compliance Officer paid $25,000. Analysts expect things to get tougher in 2016, once SEC completes a proposed program that would target money managers in mandatory third-party compliance reviews.

In recent news Wells Fargo bank has been under a lot of scrutiny regarding unethical business practice. Wells Fargo & Company, is one of the nation's largest financial banking service company that provides

Well Fargo is currently being sued over 185 Million Dollars and 5,300 were fired for making fake account.

The data breaches of 2012 compromised almost twenty-eight million private records. The year 2015 is still underway, therefore no information gathered by Privacy Rights Clearinghouse so far for 2015 was utilized. Instead, as of 2014, there have been around four thousand data breaches made public since 2005, compromising about seven hundred thirty million private records. Of the four thousand public data breaches that have occurred between 2005 and 2014, one thousand six hundred public breaches are business-related, either through financial and insurance businesses, retail and merchant businesses among other types of businesses. Business-related data breaches between 2005 and 2014 constitute forty percent of the publicized data breaches,

Because of these changes, in April 2015, an intrusion that occurred before the updates was detected. With the assistance of the Department of Homeland Security and the Federal Bureau of Investigation, an investigation was initiated and revealed 4 million personnel records were breached. Also during the investigation, it was revealed in June 2015 that there was a breach of 21.5 million records related to background investigations of current, former, and prospective Federal government employees, and for those that had previously had a background investigation conducted.

Data breaches happen daily, in too many places at once to keep count. But there is some huge breach versus a small one and we will take some examples from the biggest or most significant breaches of the 21st century to show how much risk or damage the breach caused for companies, insurers and users or account holders.

JP Morgan is the largest multinational bank in America having a total of 2.6 trillion American dollars and is considered as the major provider of financial services to both the government as well as private sectors. Along with that according to the Forbes magazine it is the third largest public based company in the world. The bank got it self in real trouble when two of the government sponsored mortgage finance companies Fannie Mae and Freddie Mac along with EMC Mortgage Corporation bought mortgages from the Jp Morgan bank for giving out loans to the people. Thus they EMC Corporation also started to package it into complex residential mortgage securities which were bought by the investors around the globe (Krieger, 2014).