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Wells Fargo fallout: New regulations on bank ‘incentives’

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Mortgage Professional America | 13 Oct 2016, 08:15 AM Agree 0
In the wake of the Wells Fargo scandal, one state is restricting bank employee incentives that ‘encourage inappropriate practices’
  • Mr. Omega | | 13 Oct 2016, 11:58 AM Agree 0
    The bottom line here, and I suspect I am on the unpopular side of this equation, is that employees accept positions requiring a specific amount of production in order to keep their job.

    That any employee would find ways to "cheat" the banking system to make themselves look good is a faulty character trait....
    and likely not the first time those employees ever cheated on other things ( like Taxes, for example).

    Meeting "quotas" is not exclusive to Wells Fargo, and other banks in cross selling services. Every business requires the sale of their products or services, and provide incentives to employees that reach their "quota". Not ONE business , with intent or malice , sets sales quota to induce any employee to cheat to get there. There are serious federal laws breached by every one of those employees that blame the bank and not themselves for their own law violating actions and THEY should face the consequences of their actions.
    Do I have empathy ? YES. Did they violate the Law ? YES Should they be prosecuted..? Wouldnt you be prosecuted if you violated Federal Law? I think YES.
    Instead however, the "law" has disregarded the employee actions and is going after the clearly represented in this article and the incredulous "class action" filing on behalf of those cheating former employees.

    Do the banks have policies that need review? Likely, but the Banks are not the criminals here. The Media and others need to finally recognize where the real criminal acts came from..No one put a gun to those employees heads..they made the choice to violate the Law all by themselves, because they thought they could "get away" with it..
    I have been in the Banking and Financial Industry for 43 years, and I know what job pressure is. Nothing ever brought me to the conclusion to violate the law and cheat. These comments are my own and protected under the United States constitution.

  • Mr. FormerBanker | | 13 Oct 2016, 12:14 PM Agree 0
    Kudos to you sir! I could not have stated it better myself. The employees who committed the fraudulent acts should be prosecuted. Perhaps the bank should have had better policies in place to follow-up with their customers to determine if the accounts were opened in accordance with the customer's desires; however, the bulk of the responsibility lies with the employees who decided to break the law.

    Of course, these days it appears that nobody is personally responsible for their actions.
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