Wells Fargo losing client trust
SOME consumers may be shying away from Wells Fargo after learning that employees used customers’ information to open sham accounts, according to new figures reported by the bank.
The nation’s largest retail bank beat expectations when it reported more than $5.6 billion in profit for the past three months. But the bank’s earnings report also hinted that the Wells Fargo may have some trouble convincing people to open new accounts in the wake of the scandal.
Wells Fargo, which has built a reputation for being more focused on “Main Street” than “Wall Street,” said that it’s too soon to know if the trouble seen last month will lead to a long-term slowdown in business. September was the month in which it became widely known that employees opened as many as 2 million unauthorized accounts to meet sales targets. And the bank says at least part of the losses seen last month could have been caused by several changes it has made as it tried to regain customers’ trust.
– The Washington Post