At Wells Fargo, workers say, sales focus was all-consuming

NEW YORK — It began with the constant and compulsive pressure to sell. Then came stress-induced health problems. Wells Fargo employees, both current and former, say they spent every day frantically trying to persuade customers to open more accounts — not for any bonuses, but simply to keep their jobs.

Even in an industry known for performance demands, the sales goals were unprecedented. Employees described a near-obsessive focus from managers on a daily — or even hourly — basis about whether they were meeting the targets. The selling pressure was even put on tellers at the lowest employment levels of the bank, employees said.

It’s no surprise that Wells executives called each location a “store” rather than a bank branch.

“Every single day the first question out of my manager was, how many appointments did I have today? How am I going to meet my goals?” said Mikey McGinn, who worked for Wells Fargo as a teller and a banker from 2007 until July of this year.

Wells Fargo’s operations are under scrutiny since it agreed to pay $185 million to federal and local authorities to settle allegations that bankers striving to meet the targets opened credit card and bank accounts, moved money between them and even created fake email addresses to sign people up for online banking — all without customer authorization. The news has reignited outrage in an American public and their representatives, still angry over the Wall Street scandals that spurred the recession. And this scandal doesn’t involve complicated financial products, but people’s regular checking and savings accounts and employees at the local branch.

Employees at the bank known for its stagecoach logo say the immense pressure to sell, coming directly from top executives, spurred them to push products customers did not need nor want. Many are angry that Wells Fargo CEO John Stumpf, castigated Tuesday by the Senate Banking Committee, has put the blame on retail bank employees and that more than 5,300 employees have been fired since the bank started investigating.

“We had to meet sales goals every day or I could get written up,” said Khalid Taha, who worked at a Wells Fargo branch in San Diego from 2013 until July 2016. Taha said he was one of the few in his branch who met his quotas, but called doing so “a miracle.” Taha says he never did anything unethical or illegal at the bank.

While it varied by branch size and day of the

week, a typical employee had to sell between 13 and 15 banking products a day — a new account, a mortgage, a retirement account, or even online banking.

The targets were high even in small towns. Bankers in St. Helena, California, were ordered to open 3,000 checking accounts and sell 12,000 other bank products a year, according to a lawsuit filed against the bank in 2011. St. Helena and the surrounding towns in the picturesque Napa Valley wine country had a total population of roughly 11,500 people.

At least three employees described a tactic known as the “mid-session review” in which Wells Fargo bankers sitting down with customers would excuse themselves in order to meet with managers, who were supposed to review the customers’ files and figure out what additional products the employees should sell them on top of the business they came to take care of. Another practice called “stage-coaching,” had Wells Fargo bankers stationed behind tellers while customers came in for routine transactions, looking for opportunities to sell.

“I dread it every day. They are in the branch for a debit card, but that’s not good enough. You have come out of left field and say, ‘Hey, how’s your credit? Let’s sign you up for a secured credit card,” said one Wells Fargo personal banker from a small town in Southern California, who spoke on condition of anonymity because the person still works for the company and fears retribution.

Faced with the unrealistic sales expectations and close tracking of their sales by managers, employees looked for ways to manipulate Wells’ sales system. Bankers in Minnesota, Pennsylvania and elsewhere described a sales culture where cheating the system was par the course.

Julie Miller was a Wells Fargo branch manager until 2013, and had worked in the banking industry for Wells Fargo and Wachovia for 20 years. She also says she never did anything illegal while at Wells, but said there were ways to game the system.

One tactic her employees would use would be closing accounts and then reopening them, a practice known in the banking industry as “churning” accounts. Under the guise of giving a customer overdraft protection, bankers would open credit card and savings accounts for them, knowing the savings account would never be funded to a level that would actually provide protection, Miller said.

“Most of the people we were opening accounts in our stores who needed the overdraft didn’t have the funds to actually get overdraft protection from it,” she said.

Several bankers said the pressure took a toll on their health. McGinn, who worked for Wells Fargo in Minnesota, said she gained weight from the stress. A banker in California said she developed a tic in her eye. Both said they also developed sleep issues related to their jobs.

Some employees did raise concerns about the aggressive sales practices. In New Jersey, one branch manager emailed Stumpf’s office in February 2011, expressing concern that employees had been moving money from one new account to another for months simply to “fool” Wells Fargo’s sales system.

Wells Fargo, asked for a response to the bankers’ stories, forwarded an email that Stumpf sent to all bank employees this week. It said Wells Fargo was committed to having a “supportive, caring, and ethical environment for team members.”

“We regret and take full responsibility for the incidents in which customers received a product they did not request, as that is inconsistent with the values and culture we strive to live up to every day,” Stumpf said in the email.

The bank has said it will be ending its sales quota system at the end of the year. It also plans to reach out to all customers going back to 2009 to verify whether the accounts were authorized.

to bring Rahami to New York for trial.

“We have a good track record of getting it done properly,” Bharara said.

The complaints filed Tuesday were placeholders for more formal grand jury indictments in coming months that may lay out additional details and charges.

If he chooses to face trial, Rahami will follow a notorious roster of men enamored with militant Islamic teachings brought to a Manhattan courthouse blocks from the World Trade Center. They include six of the men who bombed the trade center in 1993, killing six people and injuring more than 1,000 others, and 10 others convicted in 1998 bombings that killed 224 people, including a dozen Americans, at U.S. embassies in Kenya and Tanzania. The courthouse has also hosted numerous other terrorism trials, including those stemming from failed plots to bomb New York City landmarks in 1993 and bring down a dozen U.S. jets over the Far East in 1995.

The current complaints allude to laudatory references in Rahami’s notebook for Fort Hood shooter Nidal Hasan and for Anwar al-Awlaki, the American-born cleric killed in a 2011 drone strike. Prosecutors pressed terrorism-related charges against Rahami, including weapons of mass destruction counts, but the complaints do not tie him to any particular terror group.

“You don’t need to talk about terrorism in most of these prosecutions,” said David Deitch, a former federal counterterror prosecutor. “If this guy planted bombs, he committed a crime regardless of what his motive was.”

Bharara left no doubt about how prosecutors view the case. The evidence, he said, will “show this was a premeditated act of terror.”

OKOLONA — Velma Christine Rowton, age 90, of Okolona, passed away on Monday, Sept. 19, 2016.

She was born on Sept. 6, 1926, in the Mountain Home community of Montgomery County, the daughter of George Reynolds and Carrie Jane Crews Reynolds. She was preceded in death by her husband, Raymond Rowton; her son, Douglas Rowton; her grandson, Vance Rowton; her great-grandson, Douglas Palmer; two sisters, Marie Rowton and Lucille Chote; two brothers, Monroe Reynolds and Henry Reynolds; two brothers-in-law, Doyle Rowton and Carl Chote; and her sister-in-law, Maggie Rowton.

She is survived by her son and daughter-in-law, Wayne and Linda Rowton, of Okolona; two grandsons, Doug (Sharon) Rowton and Scotty (Angel) Rowton, all of Okolona; two granddaughters, Tina (Gary) Bean, of Amity, and Carrie (Ben) Palmer, of Valparaiso, Ind.; seven great-grandsons, J.D. (Harlie) Rowton, of Okolona, Alton Bean, of Amity, Spencer Palmer, Heber Palmer, David Palmer, Joseph Palmer and Benson Palmer, all of Valparaiso, Ind.; seven great-granddaughters, Nicole (Kyle) Petty, of Delight, Megan Rowton, of Okolona, Madison Bean, Chloe Bean and Lauren Bean, all of Amity, Emily Palmer and Rachael Palmer, both of Valparaiso, Ind.; her great-greatgrandson, James Petty, of Delight; her great-great-granddaughter, Blakelie Rowton, of Okolona; her stepmother, Ernestine Reynolds, of Glenwood; her sister-in-law, Marie Reynolds, of Glenwood; and several nieces and nephews.

Graveside services will be held at 10 a.m. Friday, Sept. 23, 2016, in Gaston Cemetery with Brother Chris Reynolds officiating.

Visitation will be 5-7 p.m. today.

Pallbearers will be Doug Rowton, Scotty Rowton, J.D. Rowton, Alton Bean, Gary Bean and Kyle Petty.

Honorary pallbearer is Thomas Reynolds.

Arrangements are under the direction of Davis-Smith Funeral Home, Glenwood.

Guest registry is at http:// www.davis-smith.com.

Dena Fay Sponsel, age 76, of Hot Springs, went to be with her Lord and Savior Saturday, Sept. 17, 2016.

She was born on Aug. 29, 1940, in Hot Springs, the daughter of Edgar Ray and Edith Hall Ray. She was preceded in death by her parents; one brother, Bill Ray; three sisters, Mary Mixsook, Margie Blackman and Jerry Roach; her stepson, George Sponsel; and her husband, John Sponsel, March 9, 2004.

Dena was a member of Hot Springs Baptist Church. She enjoyed the time and the people when she worked at Alf’s in Mena. But her greatest joy was spending time with her family and she loved cooking for them, she was the true meaning of a homemaker.

She is survived by one daughter and son-in-law, Vicki and Doug Oliver, of Pineville, La.; three sons and daughters-in-law, Rick and Carrie Golden, of Pearcy, Frank and Mindy Sponsel, of Durham, N.C., and Daniel and Amanda Sponsel, of Mena; 11 grandchildren, Shelby and Kayla Deatherage, Jason and Rachel Deatherage, Amanda and David Varner, Jonathan and Dixie Deatherage, Dennis and Tosha Golden, Chris Golden, Tiffany Golden, Michael Golden, Caylee Sponsel, Chloie Sponsel and Ciarra Ryan; 18 great-grandchildren, Malaki Deatherage, Zavan Deatherage, Zoe Deatherage, Ellie Deatherage, Livi Deatherage, Caleb Varner, Abby Varner, Blayne Cribb, Blake Cribb, Brookleigh Deatherage, Alex Golden, Preston Golden, C.J. Golden, Gage Golden, Ayden Golden, Ethan Golden, Laikyn Golden and Landon Deitz; the father of her children (Ricky and Vicki), Marshall Golden, of Hot Springs, and his daughter, Tami Summit; two brothers and three sisters-in-law, Bobby and Belinda Webb, Eddie and Shirley Webb, and Carolyn Ray, all of Hot Springs; two sisters, Carolyn Chambers, of Hot Springs, and Marie Cox, of Augusta, Ga.; stepchildren, Juanita and Angel Butierez, of Tucson, Ariz., Patricia Sponsel and Rex Herseim, of Loon Lake, Wash., Orval and Shannon Sponsel, of Minot, N.D., Kathleen and Jimmy Fleming, of Slaughter, La., John and Elizabeth Sponsel, of Lovell, Wyo., Michael Sponsel, of Cowley, Wyo., and Nathan and Koleen Sponsel, of Cowley, Wyo.; nieces, nephews, extended family members and a host of wonderful friends; and her dear and special friends, Martha Biglow and Wanda Gale.

Memorial service will be held at 2 p.m. Saturday, Sept. 24, 2016, in the Davis-Smith Funeral Home, Hot Springs, with Brother Shelby Deatherage officiating.

Guest registry is at http:// www.davis-smith.com.

Michael L. States, 77, of Hot Springs, was born on March 18, 1939, and passed on Sept. 21, 2016.

He was a good man with a sweet soul and a kind heart.

There will be a private memorial for family at his beloved St. Luke’s Episcopal Church at a later time.

The online obituary and guestbook are available at http:// www.GrossFuneralHome.com. HOT SPRINGS VILLAGE — William C. Swanson, 92, of Hot Springs Village, Ark., passed away Sept. 18, 2016. He was born Dec. 7, 1923, in Cannon Falls, Minn., to the late Carl Victor and Eva (Westman) Swanson.

Bill is survived by his wife, Dwinelle Swanson; daughters, Nancy Swanson (Jeff Groenke), of Ohio, Joan Eaton (Jeff), of Minnesota; stepchildren, Charles John (Ana Maria), of Hot Springs Village, Susan Ford (Gary), of Texas, David John (Stacie), of Vietnam; grandchildren, Sam and Alex Eaton, Samantha and William Martin; and stepgrandchildren, Adam and Alexandra Groenke, Stuart and Martin Ford, Amanda Foote, Sara Rockey and Summer John.

Bill was preceded in death by wife of 55 years, Joyce Swanson; his parents; and his brother, Ted Swanson.

Bill loved the outdoors and the simple pleasures of sailing and golf. He’ll be remembered for his easy laugh, his kind heart, and an inquisitive mind that kept him young at heart. He was humble, but proud to have been a part of the 8th Air Force, stationed in Great Britain during World War II, where he served as a co-pilot of a B-17 on more than 30 missions.

A celebration of Bill’s life will be held at 2 p.m. Friday at Village United Methodist Church with Dr. George McCoy and Rev. Wade Shownes officiating.

In lieu of flowers, memorials may be made to United Village Methodist Church or a charity of your choice.

Guests may register at http:// www.caruth-hale.com.

FORT SMITH — Merle Evelyn Thompson, 90, of Fort Smith, formerly of Hot Springs, went home to be with the Lord on Sept. 19, 2016. She passed away peacefully at home with her family by her side.

She was born Jan. 29, 1926, in Camden, to the late Cordell and Bessie Goodwin. Merle is also predeceased by her loving husband of 68 years, Harold Wade Thompson, and her dear friend, Lynita Wells.

Survivors include daughter, Beverly Ann (Richard) Davis, of Lucedale, Miss.; son, Ron (Shirley) Thompson, of Fort Smith; son, Todd (Nancy) Thompson, of Opelousas, La.; grandchildren, Tammi Moseley, David Davis, Nicole Stoneburg, Bailey Thompson, Brooke Thompson and Blythe Thompson; and seven great-grandchildren.

Visitation is 6-8 p.m. today at Caruth-Hale Funeral Home. Funeral services will be 10 a.m. Friday at First Assembly of God with Pastor Torin Johnson officiating. Burial will follow at Crestview Cemetery.

Guest register is http://www. caruth-hale.com.

The service for Roland “Jess” Welch, 93, of Hot Springs, who died Friday, Sept. 16, 2016, will be held at 11 a.m. Friday in the Arkansas State Veteran Cemetery, North Little Rock, with military honors provided by the U.S. Navy.