Wells Fargo’s pressure-cooker sales culture comes at a cost

E. Scott Reckard, Wells Fargo’s pressure-cooker sales culture comes at a cost. Los Angeles Times, 21 December 2013. “Wells Fargo & Co. is the nation’s leader in selling add-on services to its customers. The giant San Francisco bank brags in earnings reports of its prowess in “cross-selling” financial products such as checking and savings accounts, credit cards, mortgages and wealth management. In addition to generating fees and profits, those services keep customers tied to the bank and less likely to jump to competitors. But that success has come at a cost. The relentless pressure to sell has battered employee morale and led to ethical breaches, customer complaints and labor lawsuits, a [Los Angeles] Times investigation has found.”

Related:

James Rufus Koren, Wells Fargo to pay $185 million settlement for ‘outrageous’ sales culture. Los Angeles Times, 8 September 2016. “Calling it “outrageous” and “a major breach of trust,” local and federal regulators hammered Wells Fargo & Co. for a pervasive culture of aggressive sales goals that pushed thousands of workers to open as many as 2 million accounts that bank customers never wanted. Those practices, first uncovered by the Los Angeles Times in 2013, led to a massive $185-million settlement package announced Thursday [8 September  2016].

Pete Vernon, Q&A: Former LA Times reporter on story that led to $185 million Wells Fargo fine. Columbia Journalism Review, 12 September 2016.

Adam Davidson, How Regulation Failed With Wells Fargo. The New Yorker, 12 September 2016.

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The Great American Bubble Machine: Goldman Sachs

Matt Taibbi, The Great American Bubble Machine. Rolling Stone, From the Archives Issue 1082, 9 July 2009. (Dated 5 April 2010 online.) “From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression–and they’re about to do it again…. The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.”

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