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New study shows more bad news for Wells Fargo

New study shows more bad news for Wells Fargo


It looks like Wells Fargo’s troubles are getting worse.

If you’ll remember the embattled banking giant was fined $185 billion dollars last month for creating “bogus accounts” by signing up millions of customers for programs without their knowledge of consent. Some banking insiders said it was like: “lions hunting zebras” by targeting certain customers when opening unauthorized or unnecessary accounts.” About 14% percent of customers are actually projected to switch banks.

Wells Fargo searched for the “weakest” clients who would put up the “least” amount of resistance” including:

  • Older adults with memory problems
  • Immigrants who did not speak English very well
  • Or small business owner with several lines of credit

Now, according to a new study released by management consultants: “CG-42” Wells Fargo stands to lose:

  • $99 billion dollars in deposits
  • $4 billion dollars in revenue
  • and a 30% percent DROP in their customer base

More from CNBC below.

One of the more interesting things they found about Wells Fargo is that customer concerns over “so-called cross-selling”– (The practice of selling or suggesting related or complementary products to a prospect or customer) didn’t just start when the scandal broke in September. The study also found that before the scandal, 60% of respondents had a positive impression of the bank. After news of the scandal broke, that number dropped to just 24%. The way the bank is perceived by customers in a negative way increased from 15% to 52%.

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