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The Journal.

Why Wells Fargo Is Still Trying to Fix Itself

The Journal.

The Wall Street Journal

Daily News, Business News, News

4.25.8K Ratings

🗓️ 19 September 2023

⏱️ 17 minutes

🧾️ Download transcript

Summary

A former Wells Fargo executive was recently sentenced for her role in the bank's 2016 fake account scandal. WSJ's Ben Eisen explains why that sentencing isn't the end of this story for Wells Fargo as the bank has struggled to overhaul the way it manages risks, even seven years later. Further Reading: -Former Wells Fargo Executive Avoids Prison Time in Fake-Accounts Scandal -Wells Fargo Is Still in Fix-It Mode Further Listening: -Wells Fargo and the Fake-Account Fallout -The War Inside Goldman Sachs Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

It was 2016, and the bank Wells Fargo was in a lot of trouble.

0:11.2

Wells Fargo's fake account scandal has done a real number on the bank's reputation.

0:15.6

This is truly outrageous.

0:17.4

Thousands of Wells Fargo employees at bank branches across the country opened millions of illegal

0:24.2

accounts.

0:25.2

The employees of the bank were caught opening millions of fake accounts in their customer's

0:29.6

names.

0:30.6

The Wells Fargo fake account scandal is bigger than originally thought.

0:34.7

That's my question about Wells Fargo.

0:36.2

How far up the line did this go?

0:38.3

Some former employees say they were pressured to sell account add-ons to customers to meet

0:42.6

what they say were unattainable sales goals.

0:46.4

The story rocked the banking world.

0:49.6

Here's our colleague Ben Eisen.

0:51.2

The thing about this scandal is it kind of revealed a sort of rot at the core of the

0:56.9

bank.

0:57.9

I think there was something bad going on inside this bank for a very long period of time.

1:04.4

In last week, one executive was sentenced for her role in the fake account scandal.

1:09.3

She was the only person from Wells Fargo to face a criminal penalty.

1:14.0

But that isn't the end of the story for Wells Fargo because the bank still hasn't recovered.

1:19.3

I think the most interesting thing about the Wells Fargo scandal is just how long it's

1:24.2

lasted.

...

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