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Pervasive Sham Deals at Wells Fargo, and No One Noticed?

37 pointsby hvoover 8 years ago

6 comments

generjover 8 years ago
One of the more surprising things I&#x27;ve discovered as I&#x27;ve worked more closely with our QA guys is how little auditing goes on, especially when everything seems to be doing well.<p>But I work in the relatively non-essential world of analytics. I can&#x27;t imagine that the world of finance is so lightly examined. But I guess 2007 showed us that it really is lightly audited in some aspects.<p>Really, I think some of the difficulty is in the complexity of our financial system. I&#x27;d argue it&#x27;s similar to how no single person fully understands how a modern OS runs on an x86 chip - usually it works, but there are issues hiding in the shadows. Sometimes one of those CPU errata comes and bites you and the system crashes. Other times there is a stack overflow - something that obviously shouldn&#x27;t have happened except the code auditing guys didn&#x27;t do their jobs.
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grawlinsonover 8 years ago
There was an AMA on Reddit with an ex-employee. Here&#x27;s the link if anyone&#x27;s interested:<p><a href="https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;IAmA&#x2F;comments&#x2F;521cjr&#x2F;iama_former_wells_fargo_bank_employee_that_saw&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;IAmA&#x2F;comments&#x2F;521cjr&#x2F;iama_former_we...</a>
timmyelliotover 8 years ago
This happened to us. A Wells Fargo private banker offered a new Line-of-Credit. My wife said &quot;no.&quot; We found a Line-of-Credit opened anyway. We complained. They apologized, saying they misunderstood our conversation. Which felt like they were of partially blaming us for not communicating clearly to them.
fenomasover 8 years ago
How in the world can 5000+ people be &quot;rogue employees&quot;?
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toodlebunionsover 8 years ago
Inconceivable.
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dhsjsjjsjover 8 years ago
Based on the numbers in the article, the fake accounts generated about $1 each on average. Based on my experience being charged fees much larger than $1 by banks, it seems like the vast majority of the accounts must have generated no fees.<p>I can easily see how that would happen. As a bank user, some line item in my statement with $0 in it wouldn&#x27;t raise any eyebrows to me. And if I did get charged a fee, they would probably remove it if I complained. Even if my complaint got escalated, what are the odds it would be attributed to a system problem and not just some idiot who forgot he signed up for an account?