Wells Fargo Case Study
The document should be a maximum of three pages, using Microsoft Word. Please ensure that all written submissions are in Arial or simple readable font type 12. Handwritten assignments will not be accepted.
The writing style for the Term Paper is a formal writing style. Also, the ability to communicate your responses in a clear and concise manner is required. Please edit and proofread your paper for format, grammar, punctuation, and spelling.Wells Fargo: Setting the Stagecoach Thundering Again
The September 20, 2016 hearing of the Senate Banking Committee2 will be remembered for the relentless grilling of John Stumpf, Chairman and CEO of Wells Fargo (hereafter, Wells Fargo, or the Bank). Senator Elizabeth Warren (D-Mass.) began with the question, “Have you returned one single nickel of the millions of dollars you were paid while the scam was going on?” As Stumpf stuttered and fumbled in responding to a series of incisive questions, she concluded, “So you haven’t resigned. You haven’t returned a single nickel of your personal earnings. You haven’t fired a single senior executive. Instead, evidently, your definition of accountable is to push the blame to your low-level employees who don’t have the money for a fancy PR firm to defend themselves. It’s gutless leadership.”3 (Excerpt)
This case study requires critical thinking skills in order to apply conceptual frameworks and theories to a real-world situation as presented in the case. You are required to work independently.
Please note: Each response should reflect the question number you are answering.
Term Paper Questions: Using the information in the case, answer the questions below.1.What was the financial performance of Wells Fargo during John Stumpf’s tenure as Chief Executive Officer (2007-2016)?
2.What were the effects of the cross-sell strategy on Wells Fargo’s stakeholders?
3.Were the key elements for an ethical corporate culture present during the period of misconduct (2011-2015)? Explain your response.
4.Did the Board of Directors exercise its fiduciary duties, with reference to effective oversight of the Bank’s senior management during the period of misconduct? Explain your response.
5.What changes should the new CEO make to restore the reputation of the Bank and to improve financial performance?