How does Wells Fargo recover from PR nightmare?

Wells Fargo loses trust, promises change

GOLDEN VALLEY, Minn. - It's the largest bank in Minnesota -- Wells Fargo has more than 160 branches across the state and right now, they've got themselves a huge PR problem.

So what happened?

"They were basically stealing people's money and using it to better themselves financially. And, so it's fraud," said Dale Kurschner, of Twin Cities Business magazine.

It sounds pretty bad, and it is. But, how high up does it go? Wells Fargo CEO John Stumpf told the Wall Street Journal there was no incentive to do bad things. Yet, a lot of employees say they were pressured to cross-sell products.

"All of a sudden you have 5,000 employees who can go back and say, 'Well, wait a second, if you told us, then you shouldn't have fired us,'" Kurschner said.

So is it wrongful termination? Wells Fargo has already agreed to pay back customers and they're changing their model that led to the fraud.

"Wells Fargo has now come out and said, we are doing away with all branch-based incentives, starting January 1," he said.

But, how do they gain back that trust? And, with those changes, how do they turn 2017 into a success?

"This is gigantic for Wells Fargo because banks can't make much money today with low-interest rates," Kurschner said. "So, the way they do make money is with services and fees."


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