4 ms·
Explain what exactly Wells Fargo upper management had to gain from the fake cards? They wouldn't generate real money for the company. The people who stand to be
by throwaway2016a 10y ago
Explain what exactly Wells Fargo upper management had to gain from the fake cards? They wouldn't generate real money for the company. The people who stand to benefit most are the individual employees.
I don't know the banking industry well so maybe there is some way for the company to make money off fake cards but I can't think of one. And because of that, I tend to believe that upper management really did not intend it to happen.
- jontas 10y agoIf you own stock in the company and this causes the stock to go up (even if the rise is artificially inflated) you can still make plenty of money.
- throwaway2016a 10y agoYeah but what about fake accounts would make the stock go up? Wouldn't it actually make the revenue per account go down which would seem to me to be negative indicator. But again, I don't know the banking industry.
- conductr 10y agoGrowth metrics
- deleted 10y ago[deleted]
- tylersmith 10y agoTheir stock price was heavily based on their high cross-selling metrics.
- triplesec 10y agoIt's a short term bonus ploy, and the idea is it doesn't get found out while they're at the company Also a lot of head-in-the-sand doublethink too. Michael Lewis' book, and other in-depth reports about bankers' behaviour in the market / housing crash explains it nicely. Short term incentives for executives and moving jobs means that they aren't there when the chips are down.
- pavel_lishin 10y ago> The people who stand to benefit most are the individual employees. And their managers, and their managers' managers, whose income depends on showing good numbers to the nth-managers.