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Impact Of The Wells Fargo Scandal On Its Business

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Editor’s remarks:
Last month it was revealed that Wells Fargo employees had created two million fake accounts to meet and surpass sales targets. The initial cost was its tumbling share price coupled with a $185m settlement. However, the San Francisco bank has since released earnings to give deeper insight into the real impact on its business. Wells Fargo has hired Pricewaterhouse Coopers to conduct analysis on the overall damage. It was announced that bank visits, account openings and applications were down, as mortgages referrals from retail banking fell by 24% in September from August. To win back consumers and confidence in the bank’s provision of financial services, Wells Fargo must do more than remove senior officials from key posts – they must redefine their business model, especially in the area of retail banking, to first try to win back existing customers. Hopefully, this will also calm investors.

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