Overview
1. Intermediate Accounting
(450 words for discussion board post) (APA format)
(in-text citations are a must)
(article is attached)
No Plagiarism
No use of Artificial Technology
The Wells Fargo scandal began unraveling in September 2016. Federal regulators divulged that Wells Fargo employees created millions of secret bank and credit card accounts without customer approval. They received a $185 million fine and revealed that they had fired 5,300 employees because of fraud. As of 2022, Wells Fargo is still working on rebuilding its image.
Watch the following video:
Use this discussion board for debating this issue. You must choose and defend one side or the other:
Regulators fined Wells Fargo for their unethical business practices. Choose ONE of the following questions to discuss:
- Agree: Do you believe that regulators did enough to deter Wells Fargo from repeating this behavior? or
- Disagree: Do you believe that regulators failed and allowed Wells Fargo to continue the status quo?
Support your answers by citing research on the case.
Work to demonstrate your understanding of the material from this module and, where necessary, include your sources.
2. Intermediate Accounting
(250 words for discussion board reply) (APA format)
(in-text citations are a must)
(article is attached)
No Plagiarism
No use of Artificial Technology
Kaitlyn Batey
Jul 22 11:14pm| Last reply Jul 23 4:32pm
Reply from Kaitlyn Batey
Class,
As the manager of a bank, I was surprised at the negligence that was explained in this video. When working for a bank, especially a large corporate institution, there is a strict set of procedures that must be followed for every client that walks in the doors. The idea that Wells Fargo was aiming for 8 products per household is mind blowing to me, and I'm not sure how they thought that would be an attainable number without causing fraudulent activities to happen.
I believe that regulators did fail with the Wells Fargo scandal. Wells Fargo has had to pay billions in fines to various different entities due to this scandal, but when their net worth is $265 billion, it isn't as bad as what it could have been. The company name took a large hit, they had to pay a lot of money, and they received an asset cap, but that really isn't much for such a large company. Wells Fargo is still able to do business and they are still a widespread company. One thing that I do believe was fair was the asset cap that was placed. The cap almost put a "leash" on the company, preventing them from growing until they could prove themselves.
Overall, the executives of Wells Fargo weren't penalized very much either. The CEO and other executives forfeited part of their compensation, received fines, and were banned from the industry, but for an issue of this caliber, I don't think that was enough. In 2017 it was released that the Wells Fargo board of directors and chief executives know many of the issues related to the scandal going all the was back to 2002. From a personal and professional viewpoint, I don't think that Wells Fargo should be able to operate as a financial institution after a scandal like that.
-Katy
Cooper, C. R., & Gnanarajah, R. (2020, February 27). Wells Fargo—a timeline of recent consumer protection ... Wells Fargo—A Timeline of Recent Consumer Protection and Corporate Governance Scandals. https://www.congress.gov/crs-product/IF11129
LindseyTweeted. (2022, October 19). The rise and stall of Wells Fargo. CNBC. https://www.cnbc.com/video/2022/10/19/the-rise-and...
Wells Fargo & Company (WFC) market cap & net worth. StockAnalysis. (n.d.). https://stockanalysis.com/stocks/wfc/market-cap/
3. Intermediate Accounting
(250 words for discussion board reply) (APA format)
(in-text citations are a must)
(article is attached)
No Plagiarism
No use of Artificial Technology
Lisa Ortega
Jul 22 6:47pm| Last reply Jul 23 4:17pm
Reply from Lisa Ortega
Hi everyone.
As an accounting student and someone who works in an accounting office, I don’t believe regulators did enough to stop Wells Fargo from continuing its unethical behavior. Even though the bank paid billions in fines and faced major restrictions like the Federal Reserve’s asset cap, those actions didn’t lead to meaningful change. The same issues with sales pressure and customer mistreatment kept happening, and consumer complaints stayed high. From my experience in the accounting field, I’ve learned that financial penalties alone aren’t always enough to change internal culture, especially if leadership doesn’t face real consequences. Most top executives at Wells Fargo avoided serious accountability, and lifting the asset cap in 2025 felt rushed, especially with ongoing concerns about compliance. To truly hold a company accountable, there needs to be stronger, long-term oversight and personal responsibility at the executive level. In this case, the regulatory response looked tough on the surface but didn’t go deep enough to fix the root of the problem.
CNBC. (2022, October 19). The Rise and Stall of Wells Fargo [Video]. YouTube. https://www.cnbc.com/video/2022/10/19/the-rise-and-stall-of-wells-fargo.htmlLinks to an external site.
Cocheo, S. (2019, February 4). Wells Fargo unveils new logo to rebuild its battered brand [Marketing strategies]. The Financial Brand. https://thefinancialbrand.com/news/bank-marketing/wells-fargo-logo-rebrand-80290Links to an external site.