Embattled Wells Fargo Now Fined $1 Billion

Wells Fargo has been in the news a lot recently, and none of the stories are very flattering. The latest one has been earth-shattering for the company, which was fined a cool $1 billion by regulators who shed light upon some of the bank’s unethical practices. First there was the fact that Wells charged half a million clients for car insurance policies that they did not need. As a result of these charges, some customers had their vehicles repossessed. Then there was the fact that the bank penalized some mortgage borrowers for not making certain deadlines—even though the consumers had held up their end of the bargain, and it was the bank’s fault that the deadlines were not met.

However, it hasn’t just been the recent stories that have turned consumers against Wells Fargo; last year, the bank was involved in a scandal regarding its systems and protocol. In order to meet goals, some bank employees were opening up accounts and home equity lines of credit that customers had never authorized. Not only did this adversely affect the credit of some customers, but people were shocked and horrified to learn that bank employees had done this to them without their knowledge. Wells Fargo’s cover-up of the situation was almost as bad as the crime itself, and politicians like Senator Elizabeth Warren pushed for the ousting of the bank’s major executives. After this string of controversies and scandals, some are questioning whether or not the bank will survive.

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