Latest "Banking Ethics" Posts

Can the Wells Fargo Brand Recover from a Tarnished Ethical Lapse?

The Truth always comes out.  That is an easy statement to make and one that I have lived over and over – especially when it comes to dumb stupid choices that I’ve made that have come back to bite me.  Wells Fargo, as a company, can certainly identify with it’s share of “in the media” challenges since the truth of millions of phony accounts, fake bank card PIN’s and fake email accounts came to the surface.  It seemed that Wells Fargo’s culture of ethics was lacking.

Wells Fargo fired some 5,300 employees and has paid well over $185 million in penalties and fines – and of course, apologized.

With all the negative publicity which has created costs and consequences well beyond what most folks could envision for Wells Fargo – where do they go now moving forward?

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Posted by Chuck Gallagher in Banking Ethics and tagged , ,

Have We Gone Full Circle Ethics at Wells Fargo?

Feel free to call the recent class action lawsuit against Wells Fargo full circle ethics, or even more to the point: “What comes around, goes around.”

No matter how you want to call it, Wells Fargo is about to pay customers $110 million as part of a class action lawsuit resulting from its fake-accounts scandal.

You may recall that Wells Fargo employees were literally forced by management to open up fake bank accounts for customers who never wanted them. The $110 million to resolve the class action lawsuit comes on top of the $185 million in fines brought against Wells Fargo by the city and county of Los Angeles for its sales practices.

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Posted by Chuck Gallagher in Banking Ethics and tagged , , , ,

Banking Ethics: What Can We Learn from the Wells Fargo Disaster?

Wells Fargo was caught red-handed when their bank employees were pressured to open as many as two million banking and credit card accounts without customers’ knowledge. The pressure was applied directly from above to the retail banking employees with threats that if they didn’t produce, they would be out of jobs.  Banking ethics are at the forefront of this scandal and not likely banking-ethics-wells-fargosomething that Wells Fargo thought much about when the actions of the retails banking folks were cranking fake sales.

In an industry marked by mistrust and misdeeds, the Wells Fargo scandal set a new low for unethical behavior and fraud.

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Posted by Chuck Gallagher in Articles, Banking Ethics and tagged ,

Unethical Behavior Costs JPMorgan Chase $264 million in Fines

A bribery scheme to “hire” the friends and relatives of potential bank customers in China in return for their business, has cost JPMorgan Chase a whopping $264 million. For the sake of information, I guess it might be interesting to relate that the scheme was starting to work as they netted $100 million in new business.  All in all, it’s a banking ethics disaster.

jpmorgan-chaseThe JPMorgan Chase hired “hundreds” of mostly unqualified workers in the Chinese market and they were making merry progress until they were accused of violating the Foreign Corrupt Practices Act. In agreeing to the settlement, JP Morgan Chase  acknowledged wrongdoing as part of the settlement. To be honest, companies caught with their fingers in the fortune cookie jar rarely admit to bribery, but apparently the fine they received was just a fraction of the fine that they could have received.

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Posted by Chuck Gallagher in Banking Ethics and tagged , , , , ,

Banking Ethics: Former BankAsiana employee Karen Chon in prison

The case of Karen Chon holds virtually every element and example of where poor ethical behavior in the workplace can lead. She is now behind bars after embezzling about $1.4 Million from an Englewood Cliffs, New Jersey bank.  This is a clear example of banking ethics gone awry.

banking-ethics-stealing-from-the-vaultMs. Chon was an assistant vice president and operations officer at BankAsiana and as such, she had unrestricted access to accounts, records, the entire computer system and important for this discussion, the vault. That is correct; Ms. Chon could help herself to the vault.  Now before we get into the meat of the story, from a banking ethics and internal control perspective doesn’t it seem a bit lacking that an assistant vice president has so much access?

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Posted by Chuck Gallagher in Banking Ethics and tagged , , ,