Wells Fargo los­ing client trust

The Myanmar Times - - International Business -

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

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