The Wells-Fargo (NYSE: WFC) fake accounts scandal is developing into new directions. Two groups of former employees of the investment bank have sued, and their claims reveal that this scandal is even more outrageous than we already thought.
Turns out that one group of former employees were fired for staying honest and falling short of sales goals, which they say were unrealistic unless fake accounts were created. That second group of workers claim that they were punished for playing by the rules.
Now that the scandal is known to the public, both groups organized and sued. The first lawsuit was filed in California claiming they were fired for obeying the law, refusing to break it to meet cross selling goals.
Wells Fargo of course was quickly on the defensive, “We disagree with the allegations in the complaint and will vigorously defend against the misrepresentations it contains about Wells Fargo and all of the Wells Fargo team members whose careers have been built on doing the right thing by our customers every day.”
For a long time Wells-Fargo had a reputation of a successful investment bank that consistently managed to sell several products to the same customers. Now we know how they did it.