Wells Fargo must emphasize service not cross-selling - analyst

Record ID: 86950

  • Title: Wells Fargo must emphasize service not cross-selling - analyst
  • Date: 14th September 2016
  • Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) VARIOUS OF WELLS FARGO BRANCH
  • Embargoed: 29th September 2016 20:46
  • Keywords: Wells Fargo & Co retail bankers bank accounts credit cards customers sales goals Richard Bove Rafferty Capital Markets
  • Location: TAMPA, FLORIDA, + NEW YORK, NEW YORK, UNITED STATES
  • City: TAMPA, FLORIDA, + NEW YORK, NEW YORK, UNITED STATES
  • Country: USA
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA0054ZJHDAL
  • Aspect Ratio: 16:9
  • Story Text: Wells Fargo scrapped its product sales goals for retail bankers and may take further disciplinary action against its employees in the wake of a fake account scandal that has already led to $190 million in fines and the firing of 5,300 employees.
    "It's a serious issue in a sense that it appears that the sales, if you will, function has become far more important than a whole series of other control functions, which should exist within the company," said Richard Bove of Rafferty Capital Markets on Wednesday (September 14).
    Wells Fargo has been hit hard by allegations its staff opened more than two million bank accounts and credit cards for customers without their consent in a bid to meet internal sales goals.
    Politicians are calling for an investigation, and Wells Fargo and regulators are expected to testify in the Senate next week.
    Bove says, "The bank should make some overwhelming statement, which everybody would like relative to the way they deal with the bank, to take the emphasis off this issue and put it on a positive step that the bank is taking."
    One of the United States' largest and most respected financial institutions, Wells Fargo built itself into the most valuable U.S. bank after the financial crisis partly because it did not rely on risky trades or complex derivatives to turn a profit.
  • Copyright Holder: FILE REUTERS (CAN SELL)
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