Wells Fargo ‘sorry’-ass wagon is a-comin’
The Wells Fargo apology tour is under way.
Tim Sloan, who’s been the bank’s chief executive for barely two weeks, made a personal plea to workers in Charlotte, NC, the onetime home of Wachovia, which Wells Fargo bought in 2008, to say “sorry” for his predecessor’s sins, according to reports.
John Stumpf, who led thebank until Oct. 12, fostered a pressure-cooker environment that brought 2 million fake checking accounts and 565,000 fake credit cards, which led to 5,300 fired employees.
“Many felt we blamed our team members. That one still hurts, and I am committed to rectifying it,” Sloan said, according to CNBC.
Sloan, who’s worked for the bank for 29 years, is in charge of rehabilitating the company’s wholesome image.
Stumpf ’s resignation as chairman and chief executive rocked the bank, which is under investigation by the Justice Department and faces multiple class-action lawsuits.
Last month, the bank settled with government agencies for $185 million over the rampant — and possibly criminal — opening of fake accounts.
Under Stumpf, bankers were expected to push customers to sign up for as many as eight financial products, like checking accounts, online accounts and credit cards.
The reason for eight? “Eight is great,” Stumpf told investors.
The pressure was so intense that one employee was forced to stay late and cold-call customers to open new accounts after her branch in San Francisco had been robbed at gunpoint, one former banker told NPR’s Planet Money.
What’s more, Sloan is buying TV time in major markets, showing a 30-second spot of slow-moving horses and trademark stagecoach with the closing message: “We’re renewing our commitment to you.”