The Wells Fargo Scandal Timeline
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The Wells Fargo Scandalby Ellie Plouff Newstitle
About Wells FargoWells Fargo is an international banking and financial services company out of San Francisco. It is the third largest bank in the U.S. They have over 6,000 branches and over 13,000 ATMs. House in the Valley
20115120157305/2011- 7/2015Wells Fargo's Misconduct Wells Fargo had 2 million bank accounts or credit cards opened or applied for without customers being aware and without customer approval. They opened these accounts with customer info and money. They had gotten away with doing this for five years..Due to this scandal, many groups and areas become involved in reprimanding the bank and making efforts that similar misconduct will not happen again.
2016982016989/8/2016Misconduct Revealed The Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency and the Los Angeles City Attorney revealed these wrongdoings and fined Wells Fargo $185 million for this.
At this time, Wells Fargo stated that they fired over 5,300 employees in relation to the unapproved accounts and apologized for Wells Fargo customers receiving services of products they did not want.

CFPB- is an executive U.S. government that is responsible for protecting consumers in the financial sector. They make decisions regarding credit unions, banks, debt collectors, securities firms and other financial companies in the U.S.
Office of the Comptroller of the Currency- is an independent bureau within the U.S. Treasury. They are in charge of chartering, regulating and supervising the banks operating in the U.S.*455/640x360_60912C00-CMHDF.jpgNBC 15Chicago to NYC#333333
20169132016 9139/13/16Suspension of Employee Sales ProgramsWells Fargo announced its suspending all of their employee sales programs in an effort to regain customer trust that their employees would be working for the customer's best interest. When Wells Fargo announced it fired 5,300 employees in relation to the misconduct, they portrayed it as if these employees were solely just "bad apples". But, this misconduct allegedly goes back to the pressures on their employees to perform. Many previous employees came forward and expressed the company's unrealistic sales exprectations and harsh selling culture. They emphasized the use of cross-selling and when employees did not meet their sales expectation they were given a talk where their job was threatened. Others were just trying to sell enough in any way they could in order to earn financial rewards through Wells Fargo's incentive-compensation program. The suspension of these programs will be effective on January 1st 2017. Daily NewsA video about how to make timelines!
201691420169149/14/16More Begin to Investigate It is announced that the FBI has opened up an investigation of Wells Fargo and the Department of Justice issued subpoenas to Wells Fargo over the misconduct. More U.S. attorney’s have started to investigate it as well. Street
201691620169169/16/2016Investigation Continues & First Class Action Lawsuit The House of Representative's Financial Services Committee started an investigation of the bank’s wrongdoings along with those in Washington who were responsible for regulating and monitoring the bank. At this time, a letter was sent as well to Wells Fargo’s general counsel asking him to make four senior executives available to speak with the press. One of the four executives requested is Carrie Tolstedt. She was the head of Wells Fargo's community banking division until in July when she announced her plans to retire shortly. Also on September 16th, Utah residents filed the first class-action lawsuit from customers against Wells Fargo over the allegations of the misconduct.
20169202016 9 20 9/20/16Senate Banking Committee wants Stumpf to ResignThe Chairman and CEO of Wells Fargo, John Stumpf spoke publicly in front of the Senate Banking Committee. Massachusetts’s Senator Elizabeth Warren called Stumpf to resign or he would have criminal charges. Many other senators there supported this. Money
201692220169229/22/16Investigation of the Violation of FLSA, Stumpf Resigns from Federal Advisory Council Investigation of the Violation of FLSA, Stumpf Resigns from Federal Advisory Council
Several senators requested the U.S. Department of Labor (DOL) to start an investigation of Wells Fargo and whether they violated the Fair Labor Standards Act (FLSA) due to the allegations about their harsh selling environment in the work place.
On this day, Stumpf resigned from his spot on the Federal Advisory Council. The Federal Advisory Council meets with the Federal Reserve four times a year to advise it on economic and banking issues. Insider
20169232016 9239/23/16Forced Arbitration ClausesAccording to ABC News, six senators wrote a letter that stated their disapproval of Wells Fargo’s use of forced arbitration clauses in their customer account agreements. They are upset with these clauses because it let the company keep this scandal out of sight from the public for such a long time. In their letter they also requested that John Stumpf to provide information so that they can understand why Wells Fargo would do this and to help the prevention of future misconduct. by Suits
20169262016 9269/26/16Lawsuit Representing EmployeesTwo former Wells Fargo employees named Alexander Polonsky and Brian Zaghi filed a lawsuit against the bank in California. They want the lawsuit to represent those who previously worked for Wells Fargo or currently work for Wells Fargo that were “either demoted, forced to resign, or terminated,” for not meeting “impossible” quotas that they set as goals for employees to open accounts on behalf of customers. Contact
20169272016 9 27 9/27/16 Executives will not Accept Compensation during InvestigationsIt is announced that Stumpf will forgo not receive his $41 million of promised compensation or his usual salary as an independent investigation is launched. This was announced two days before he was going to testify at the House Financial Services Committee over the scandal. Tolstedt left the company on this day although her announced date of retirement was supposed to be at the end of the year (which one would usually assume is in December, not September). She would also not receive her compensation for the year. Fender
20169292016 9 29 9/29/16 House Financial Services Committee Request Stumpf ResignsWhile at the House, members of the House Financial Services Committee grilled Stumpf and declared he should resign over the scandal. The hearing lasted for over four hours. Post
20161032016 10310/3/16The Scandal Reaches the ElectionThe Wells Fargo scandal reached the election when Hillary Clinton spoke against the bank’s misconduct during her campaign stop in in Toledo, Ohio.
20161052016 10 510/5/16 Request for the Justice Department to Investigate Senior Executives at Wells FargoFourteen senators sent a letter to Attorney General Loretta Lynch asking the Justice Department to investigate the senior executives at Wells Fargo. They reminded us of the financial crisis in the letter by saying, “Following the 2008 financial crisis, the American people watched as senior executives repeatedly escaped accountability for actions that nearly brought down the global economy,” according to ABC News. Economics
201610122016 10 1210/12/16 Stumpf ResignsWells Fargo said that Stumpf would retire as CEO and Chairman immediately. Tim Sloan replaced him as CEO and Stephen Sanger and took his spot as chairman. Sloan said, "immediate and highest priority is to restore trust in Wells Fargo". It is also revealed that Stumpf sold $61 million of Wells Fargo stock in September leading up to the CFPB investigation beginning.
201610192016 10 19 10/19/16 Criminal Investigation of EmployeesCalifornia Attorney General Kamala Harris began a criminal investigation into whether or not the Wells Fargo employees committed false impersonation and identity theft amongst the scandal.
20161024201610 2410/24/16 Ad CampaignWells Fargo started a TV ad campaign in efforts to regain consumer trust by showing a pledge to address customer concerns.
20161132016 11311/3/16 SEC InvestigationWells Fargo disclosed that the U.S. Securities and Exchange Commission (SEC) is investigating their sales practices. Focus
201611242016112411/24/16Private ArbitrationsWells Fargo asked a Federal District Court to make customers who are suing the bank over the opening of unauthorized accounts to settle their disputes in private arbitrations instead of in court. Country Caller
20161212016 12112/1/16 Separation of RolesWells Fargo decided to separate the roles of chairman and CEO. They will require the chairman to be independent to try to rebuild their customers’ trust. Jay
20161262016 12612/6/16 SF Sanctions Wells Fargo The city of Wells Fargo’s headquarters, San Francisco, has created a sanction plan on the bank called “Sanctioning Wells Fargo”. It is a two-year suspension of Wells Fargo’s “provision of broker/dealer, commercial banking, and commercial paper dealer services to the city;” The city is also abandoning its partnerships and programs with the bank.
2016127201612712/7/16 Frustrating ResponsesWells Fargo’s responses to each of the new findings as they came out (allegations, letters, investigations) were very frustrating to the public. Instead of being clear with the issues, addressing what went wrong or saying what their new efforts to in response and for prevention in the future would be, they defended their company and pushed against the details that were emerging. The worst is their claims that the wrongdoings of over 3,500 of their employees is compared to an isolated incident. Their lack of transparency during this huge revelation of their wrongdoings will not do them any favors in keeping customers and will further damage their reputation. In the future, Wells Fargo should be transparent as issues pop up instead of not saying anything and waiting to deal with a huge storm, like this. Wise
20161282016 12812/8/2016Reflection on Possible OutcomesThe trust between the Wells Fargo and consumers is severed. Wells Fargo’s customers could begin leaving and putting their money in other banks, their competition. It also causes consumers to lose confidence in all of the banks as a whole because one of the biggest banks was able to get away with this. This could ultimately lead to people not putting money in the banks and spending or just saving it physically themselves. If they do that, banks can begin to lose a part of their money supply that they usually have to be able to lend out. Also, due to this scandal, regulators will most likely create firmer compensation rules and more enforcement acts on the banks.

For those who had accounts or cards opened in their name without their approval, is that their credit reports and credit scores could be negatively affected. A new credit card could negatively affect someone’s credit score by bringing down the average age of accounts on his or her report. Credit reports and credit scores can harm people’s ability to be able to get loans to have a car or a house, for example. Moving forward after this scandal, consumers need to closely watch their accounts regularly to make sure everything is they have approved and to make sure that they are not getting charged unnecessary fees. Now that we know this is possible on banks behalf, we can’t assume that we are always being respected as a customer and to be weary. Info Security
2016129201612912/9/2016 Supplemental Video A quick refresher- What do you think? Mojo
201612102016121012/10/2016Thank You! Vision Alliance
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