Wells Fargo is just the latest member of Corporate America to get caught with its hands in its Customers’ pockets. Wells’ opening of non-authorized credit cards, and other accounts, generates increased revenue for the company. You might have noticed questionable additional charges on your utility bill, received the hard-sell to accept unnecessary options when you bought a car, or were charged for unnecessary “extras” on your cell phone bill. Unfortunately, this happens everywhere today, it seems.
Many employees have noticed that the corporate contribution for their health care, retirement and other so-called employer-sponsored benefits (if they have them, at all) have been reduced, as the workers are now expected to pay even more. In essence, Corporate America has been pulling-back those benefits that attracted employees to begin with. Yes, the cost of those benefits do eat into corporate profits; but, the commitment of those same employees, to the corporation’s success, hasn’t diminished one bit!
There’s a new Sales Paradigm in many companies that’s intended to fill the vacuum for employees taking greater ownership of their own benefit programs. More and more, a greater portion of employees’ compensation is based on meeting sales and referral goals, which can actually improve their livelihood in the long run. So, let’s focus on the Banking System for a moment, since this is where many in Congress are fighting against the interests of the American People.
Much has been written, blaming the overall Banking Industry for The Great Recession, which was caused mostly by the larger banks, just eight years ago. Sub-Prime Mortgages, Credit Default Swaps, rating agencies benefitting from fraudulently-assigned Bond Ratings, illegal currency trading, etc, abounded throughout the Banking Community. But, schemes like the Wells Fargo credit card scam are now invariably part of everyday Corporate America.
When corporate executives change the method of paying employees—away from salary-only to include a significant bonus option—there will always be some employees who figure-out how to enhance their take-home pay. And, once the landscape changes within a company, the malfeasance can spread, and become ingrained.
Intermediate managers also benefit from the increased revenue, which the new paradigm generates, and probably have goals for their departments, as well. Perhaps, some managers, in turn, might be most happy to point-out the higher incomes of some employees, to others who didn’t seem to “get the message”. All of such managerial encouragement is, no-doubt, subliminal, but absolutely necessary for this to work. The whole corporate executive food chain, however, benefits from the new Sales Landscape.
In July of 2010, President Barack Obama signed the “Dodd-Frank Wall Street Reform and Consumer Protection Act” into Law. Dodd-Frank was designed to rein-in the American Banking System, and to prevent it from ever again engaging in such illegal activities. In fact, Senator Elizabeth Warren’s (D-MA) brain-child, the Consumer Financial Protection Bureau, a vital component of that Bill, was specifically intended to protect American Consumers against scams such as the opening of unauthorized credit card accounts.
The Banking Industry has been working overtime to de-fang and, perhaps, repeal Dodd-Frank. Their Republican Allies in Congress have graciously accepted campaign contributions in order to accommodate the bankers’ goals.
Back in the 1940s, notorious bank robber Willie Sutton was asked why he robbed banks. Sutton responded: ““Because that’s where the money is!” Well, now we know why!
NOTE So, almost seven months later, the Wells Fargo Board of Directors finally came to the same conclusion that anyone possessing a little common sense did, six and a half months ago. When the numbers spike, very significantly, in several specific indicators, shouldn’t all executives–up-and-down the line–take notice? What have we done right–and let’s do more of it.\! And, if something is going wrong, let’s get that corrected! Don’t they get paid to have a little Common Sense?