market-ticker.org / by Karl Denninger / 2016-09-09 07:52
So let me see if I get this right.
Wells Fargo put in place an extremely aggressive “cross-selling” requirement for their associates — basically, to keep your job and advance you were required to sell customers new products, which means that as an associate you had to be openly pushy to the point of hostility in order to keep your job.
Employees found this, obviously, to not work so well. You see, there’s a point at which pestering customers who come into your bank to cash a check or similar in an attempt to sell them something else, whether it be a credit card account or some other financial product, get very tired of this crap and instead of transacting the business they intended they pull all their money out and close their accounts instead, going next door to the other bank (and there always is one.)
So to combat that problem these employees — 5,300 of them — committed open, outrageous and I might mention illegal acts. They signed up customers for “new services and fees”, in some cases transferring money into accounts they had never requested or opened.
Now let’s think about this for a minute. If you have money in some place and it is moved without consent that is both fraud and theft. If you are charged money for something you never requested or ordered, and the funds are taken, that too is fraud and theft.