Wells Fargo Scandal and Consequences

The Wells Fargo scandal involved employees creating unauthorized bank accounts and credit cards to meet sales targets, affecting up to 2 million customers. This led to job losses for over 5,000 employees and a significant market impact, with shares dropping by 6%. Political figures, including Senator Liz Warren, criticized Wells Fargo's leadership, calling for accountability. Federal investigations are ongoing, raising concerns about similar practices across the banking sector.

What did Wells Fargo employees create without customer knowledge?

• Bank accounts and credit cards

• Insurance policies

• Investment portfolios

• Loan agreements

What was the average fee some customers were charged for accounts they didn't know existed?

• $100

• $50

• $10

• $25

What did the Los Angeles Times investigation reveal about Wells Fargo's sales culture?

• It was customer-friendly

• It was high-pressure and unethical

• It was focused on long-term goals

• It was relaxed and flexible

What did some employees do in desperation to meet sales targets?

• Offered discounts

• Resigned from their jobs

• Worked overtime

• Opened unneeded accounts for customers

How many employees lost their jobs due to the scandal?

• 1,000

• 2,500

• 10,000

• 5,000

By how much did Wells Fargo's market shares drop after the scandal broke?

• 4%

• 2%

• 8%

• 6%

What was the estimated market cap loss for Wells Fargo due to the scandal?

• $10 billion

• $12 billion

• $14 billion

• $16 billion

Which politician called for the resignation of Wells Fargo's CEO?

• Senator Kamala Harris

• Senator Ted Cruz

• Senator Elizabeth Warren

• Senator Bernie Sanders

What is the concern on Wall Street regarding the Wells Fargo scandal?

• It will increase customer trust in banks

• It will cause a ripple effect across the banking sector

• It will lead to higher interest rates

• It will result in more bank mergers

What action have federal prosecutors taken in response to the Wells Fargo scandal?

• Issued fines

• Begun an investigation

• Filed a lawsuit

• Closed the investigation