Discuss about the Illegal Accounts and Credit Cards.
Wells Fargo, is known to be one of the consumer banks leading in the Unites states, has been penalized, to pay the amount of 185 billion dollars for the scam of forging the customers’ signatures and opening the illegal accounts and also credit cards through their names. From this article, one can know the type of culture that is promoted by playing tactics of aggressive sales and the scenarios that the bank had to face for the kind of actions carried by them which led to humiliation (Cowley, 2016).
The consumer has to note and keep these tips in mind that while signing on for any of the additional products which are either needed or not by them:
- If at all your banker or the broker gives you a suggestion of additional services or the products which were not planned by you for signing up the document then you should stay away from it. It should be enquired by multiple queries and gather all the information regarding the product and give a deep thought about it as the product does not go anywhere it would stay in the bank (Cowley, 2016).
- After gathering all the required and necessary information, comparison of the product or the services that have been suggested with respect to the other providers and how it benefits you. For example, websites such as NerdWalllet and Bankrate can be used for comparing the bank accounts and the mortgage rates so that you can access how it is competing with your rates (Cowley, 2016).
- If any additional services are required by you don’t make any payment for it. If your banker is giving the mutual-fund investment, the funds that are suggested might also include the commissions of up front or it might consist of some inbuilt charges which are needed for compensating the security units of the bank. If any of the investment assistance is not needed or required, then there are many other options available where investments can be made cheaply by purchasing the low-cost funds or the ETF’s with the help of online mediators (Cowley, 2016).
However, it is not easy for any of the consumers for not getting tempted about the convenience that is provided, especially when the bankers are aware of the various ways for attracting the customers during which they even try to hide their illicit actions.
The role of the financial manager has been clearly depicted in this article by describing all their responsibilities with respect to the banking activities. Financial managers are the stakeholders who perform the data analysis and gives advice to the senior managers on the ideas that provide maximum profits to the bank. In maintaining the financial health of the organization the financial managers play a very important role. Financial reports are produced by them, the activities of the direct investments and the strategy development and the planning of the situations for achieving the long-term goals of the organization with respect to finance are the roles of the financial managers (Cowley, 2016). The typical role of the financial manager includes:
- Preparation of the financial statements, reports of the business activities and the forecasts,
- Monitoring of the financial details for ensuring that all the guidelines of the legal requirements are met correctly,
- The employees who perform the financial reporting and the budgeting are supervised by these managers,
- The financial reports of the company are reviewed and also finds the ways for reducing the costs for the consumers,
- For expanding the banking activities for benefitting the consumers they try to find out the opportunities as per the market trends or ideas for purchasing the other banking companies,
- For making the financial decisions they provide appropriate help
But here the role of the financial manager seems to be changing with the response to the kind of advancement in the technology, which has significantly shown a reduction in the amount of the time taken for producing the financial reports. The key responsibility of the financial managers is to monitor the finances of the company, but nowadays they are involved in more of the data analysis and providing advices to the senior managers for making the ideas that would benefit them with more profits (Cowley, 2016). Even teamwork is carried out by them often where they act as the business advisors to the top level executives.
Financial managers are also involved in the tasks that are specific to the particular organizations. Also, they should be aware of the special laws with respect to taxation and the regulations that would affect the industry in any illegal actions.
Alicia Adamczyk. Karen Damato. Lessons of the Wells Fargo Fake-Account Scandal. https://time.com/money/4485599/wells-fargo-cross-selling-scandal/.2016
Cowley, S. 2016. Wells Fargo’s Reaction to Scandal Fails to Satisfy Angry Lawmakers. [online] Nytimes.com. Available at: https://www.nytimes.com/2016/09/30/business/dealbook/wells-fargo-ceo-john-stumpf-house-hearing.html? [Accessed 17 Nov. 2016].
Source: Boundless. “The Role of Financial Managers.” Boundless Business. Boundless, 08 Aug. 2016. Retrieved 17 Nov. 2016 from https://www.boundless.com/business/textbooks/boundless-business-textbook/financial-management-19/introduction-to-financial-management-114/the-role-of-financial-managers-534-10164/