Wells Fargo does penance for scandal by embracing Left-Wing politics My advice to them: shut up and make loans.

Home  »  Consumer reports  »  Wells Fargo does penance for scandal by embracing Left-Wing politics
Print This Post Print This Post
Oct 3, 2017 No Comments ›› admin

By Lynn Woolley

Wells Fargo has been a bad bank.

By that, we mean it has been involved in scandals that have resulted in loss of jobs, large government fines, and lawsuits. Wells Fargo is accused of creating up to 2.5 million fake accounts – in order to meet outrageous sales targets. Not only that, the Bank has admitted that it signed up more than half a million customers for auto loan insurance they did not need.

So what’s a bank to do to regain the public trust?

Go left, apparently. After what is described as “soul searching,” Wells Fargo executives have decided to oppose President Trump on his reversal of Obama’s DACA order that kept the so-called Dreamers from being deported. Never mind that Trump had no choice since Obama’s order was unconstitutional. But the mystery to me is why a bank would go left, rather than embrace American values.

Wells Fargo has found a very strange way to get out of trouble.

Full disclosure: I have a home mortgage with Wells Fargo, and I have no complaints with their service. As far as I know, the Bank did not create a fake account in my name. But as of now, I would not use them again for two reasons: (1) I am not happy that they set up fraudulent accounts to meet sales goals, and (2) If I have a choice in the matter, I will not use a company that practices left-wing politics.

It’s downright weird that a company “soul searches,” and decides the best way to repair its reputation is to oppose a policy of President Trump’s. The policy – in this case, DACA – is not the issue. The issue is why get political when you’re already in trouble with your customers base, and more than half of them may be conservatives.

Wells Fargo may be playing to the “emerging demographics.”

Wells Fargo’s new political awakening was announced to a Dallas meeting of the U.S. Hispanic Chamber of Commerce, a race-based organization. Jon Campbell, the Banks’ head of corporate responsibility and community relations, explained to the cheering crowd that supporting DACA as a social and economic issue is a “no brainer.”

“Wells has been rather conservative in our willingness to speak out on certain issues,” he said.

And that should be the continuing policy. A bank that has committed fraud against its own customers should work on regaining trust through ridding itself of the managers that encouraged the fraud, and by making restitution as necessary. Then, the bank should make a solemn promise to its customers not to ever let this type of thing happen again.

The Dallas Morning News reported on what these scandals have already cost Wells Fargo:

For those violations, the bank has been fined $185 million by regulators, and it has paid $142 million to settle a class-action lawsuit. …In July, the company also acknowledged that it signed up 570,000 customers for auto loan insurance they didn’t need. The bank will repay $80 million and said the unwanted insurance might have cost 20,000 people their cars.

Wells Fargo is a bank and not a political organization. Or so one would think. My mortgage was sold to them without my consent – as often happens. If I were to buy another property now, I would put it in the contract that Wells Fargo is not to be sold the loan.

Wells Fargo chief executive Timothy J. Sloan takes part in the Yahoo Finance All Markets Summit in New York on Feb. 8. (Lucas Jackson/Reuters)

Strangely enough, I have really liked this bank and enjoyed having them as my mortgage holder. They have been responsive through two refinances, and I have had no problems with them. On the other hand, the fraud was disturbing – but can be forgiven if they do the right thing.

Going political is the worst choice possible. They very well may lose more customers because of it. My advice to them: shut up and make loans.


Tagged with: , , , , , ,

Leave a Reply

You must be logged in to post a comment.

%d bloggers like this: