Case motivation

Case Synopsis

Wells Fargo is a long established and highly respected US bank that
came out of the GFC relatively unscathed and had Warren Buffett as a
major investor.
However, in 2016, it was fined $185 million USD by the Consumer
Financial Protection Bureau (CFPB) and other regulatory bodies, and
admitted to opening unauthorised accounts for millions of its
In this case, we examine what pressures there were in Wells Fargo,
how this lead to questionable behaviour and what mechanisms can be
put in place to deter events like this.

Questions to consider
1. What was Wells Fargo strategy for competing in the
community banking sector?
2. What were the sales goals that led to these problems?
3. What factors might have contributed to the questionable
sales tactics taken by bank employees?
4. How do we develop incentive mechanisms are not just
profit motivated but also ethical?
5. What should Sloan do to prevent similar actions in the


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