Our relationship with our bank is based on trust. In order for you to trust a financial institution with the money that you have earned, they need to be trustworthy and have a great reputation. Wells Fargo had a great reputation with trust before their secrets were exposed to the community on what they had been doing.
On September 8th, 2016 it was exposed to the public that Wells Fargo employees were opening over 2 million fake bank accounts in customers’ names (CNN Money, 2016). Over 5,000 Wells Fargo employees were fired for creating unauthorized bank accounts without their knowledge. Wells Fargo was fined $185 million by the CFPB (ABC News, 2016). The Wells Fargo employees were incentivized on how many accounts they opened in a customer’s name. The employees also had bad oversight since senior managers also ignored or committed the unethical behaviors. Wells Fargo is doing everything in their power to regain trust of the community and its customers. “In this circumstance, customers should have under $250,000 in their account so they are FDIC insured.” Mohamed Ben Driss Alami the strategy director of the U.S division of LafargeHolcim explained. Wells Fargo customers with FDIC insured accounts should not lose their money. “No depositor has lost a penny of FDIC-insured funds,” according to the FDIC website.