While doing my trading, along with my computer, I have my TV on. I’m tuned into one of the financial stations; either Bloomberg or CNBC. Both last week and yesterday, the CEO of Wells Fargo, John Stumpf has been getting grilled by the lawmakers of congress, in full view on TV, because of the recent banking scandal. The Wells Fargo scandal involves hyper-aggressive sales tactics forced on lower level workers by management. Bank employees were pressured to call account holders repeatedly and hassle them to open more accounts. In addition, millions of accounts were opened, unbeknownst to customers, by using there social security numbers that were on file. Among other crimes, Wells Fargo will be charged with identity theft. The bank has also opening credit card accounts without customer’s permission. Here’s the unbelievable part. Wells Fargo was charging these accounts maintenance fees and taking the fees out of other accounts these customers had. Or charging the new accounts which had no money in them. When they tried to get maintenance fees out of unknown accounts, which had no money in them, the bank’s computers sent default notices to the credit agencies. Now millions of good customers have lower credit scores. Besides getting ripped off for false account fees, millions of these hard working people received higher interest rates on mortgages in the last 5 years, or more, because of bad credit scores. You can’t make this stuff up!
Wells Fargo fired over 5000 lower level workers, all making between $12 and $25 an hour. No senior level or upper level management personal were fired. The Wells employees who put the quoters in place and threatened lower level workers with demotion or termination, were not fired. In fact, John Stumpt, the CEO and other big wigs received unprecedented bonuses. Now, other bank industry employees are coming out of the woodwork to report that these practices are widespread in the entire banking industry.
The corporate greed in this country, and beyond, is out of control. If you read my page “Let’s get Started” you will see I mention this in the first paragraph. The public companies are hell bent on corporate profit. They must beat the last quarter’s profits in fear the stock price will go down. If the stock price goes down the corporate officers, who own millions of shares will lose millions of dollars. They will do what ever it takes to make bigger profits to achieve a higher stock price. Even rip off the hard working people of this country. Corporate greed!
My advice: Education yourself! Do not rely on any greedy bank to care for your money. Me, I keep as little money in the bank as possible. I education myself. I handle my own investments. The name of my website/blog is “Main Street beats Wall Street” for a reason. I don’t trust any of them. I want to beat the hell out of Wall Street!…..Legally!
Steve
TheOptions Coach