Spotting a single cockroach scurrying across the kitchen floor when you flip the light on is disconcerting enough. What’s even worse is the knowledge there are almost certainly more you can’t see, lurking in dark crevices, part of a systemic problem (of your own creation or otherwise). The same is true of the consumer rights violations uncovered at Wells Fargo.
As billionaire investor Warren Buffet recently commented to CNBC, Wells Fargo’s recent woes are indicative not just of issues within that institution, but are likely reflective of more widespread problems within then banking industry as a whole. When this issues are spotlighted – as is currently being done with a third-party review of the bank’s most recent sales scandal – we’re likely to be seeing more of the same. Even the bank’s CEO in an internal message warned workers to brace for the potential onslaught of negative headlines as the independent review nears a close.
Buffet commented that anytime an organization with thousands of employees is heavily scrutinized, issues will be uncovered. This is especially true when there have already been notable systemic problems. Such issues highlight the culture of a place, which can set the tone for other shady practices. Continue reading