Wells Fargo has been hit with another major setback and it’s all due to the scandal that the banking giant has been embroiled in regarding millions of phony accounts.
City officials did not say directly that it was severing its ties with Wells Fargo because of the banking scandal in which 2 million fake accounts were established to unknowing customers by unscrupulous employees of the bank. Sales people were encouraged to enroll as many unsuspecting consumers as possible in as many accounts as possible. Some customers had as many as 8 new accounts established under their names without their knowing. More than 5,000 Wells Fargo employees were fired as a result of the disgrace, and the 2nd largest bank in the United States was fined $185 million dollars.
City Councilwoman Cindy Bass said about today’s move by the city-
“Time and time again the actions by Wells Fargo have revealed them to be the opposite of corporate social responsibility. Thanks to the colleagues on the committee for doing the right thing and sending a message (to the banking industry) that we will not do business with companies that engage in unethical business practices.”
The city of Philadelphia will turn to Citizens Bank to be in charge of its payroll.
The Los Angeles Times has produced an information video to better understand the recent improprieties by Wells Fargo. Watch below.
Phil Cannella is the creator of The Crash Proof Retirement Show, which broadcasts across the CBS Radio Network (2.3 million listeners in Philadelphia) as well as NewsTalk 850 in South Florida.
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