It may surprise you to learn that a bank which has difficulty counting the number of accounts it has, responding to suspicious activity claims, correctly making calculations that determine whether or not people get turfed out of their homes, figuring out how to date-stamp dinner orders so just outsources the whole thing to GrubHub, thinks “telecommuting” involves opening offices in the Midwest, has a backlog of 3,000 employee complaints, and doesn’t much care to spend money on technology, doesn’t have great technology.

The outage brought into public view the technology failures that have been occurring behind the scenes at Wells Fargo for years. Antiquated systems have made it difficult for the bank to meet the demands of regulators, who are closely scrutinizing the firm after its 2016 fake-account scandal, according to more than a dozen current and former employees.

The firm has struggled with tasks like monitoring employee pay and building a new platform for financial advisers, hampering key businesses.

Equally surprising—and possibly even connected to the aforementioned—is that this bank, “wonderful and important” as it may be in its adoring new CEO’s eyes, isn’t doing so well on account of its having become a (presumably malfunctioning) ATM for plaintiffs’ lawyers and regulators.

The lender on Tuesday said it took a $1.5 billion charge for costs stemming from the scandal that has dogged it since 2016, fueling a 53% profit drop….

[Scharf] said he would tackle regulatory problems “with a different sense of urgency and resolve.” However, he declined to lay out a timeline for resolving regulatory problems, which include a cap on asset growth by the Federal Reserve and 12 public enforcement actions. He said the issues won’t necessarily be resolved this year.

‘We Need to Be a Technology Company.’ Wells Fargo Struggles With Aging Systems. [WSJ]
Wells Fargo CEO: A Wonderful Bank That Made ‘Some Terrible Mistakes’ [WSJ]


Image adapted from Flickr User Aranami.

Wells Fargo May Deprive Investors Of Its Peerless Service And Customer Care

But not before drawing one last racial discrimination lawsuit therefrom.

Wells Fargo.Insane

Wells Fargo Employees Turn Congress Into The HR Department They Wish They Had

But don’t worry, little stagecoach drivers: Jamie Dimon’s son-in-law is figuring out how to fix all of those broken wooden wheels.

Image adapted from Flickr User Aranami.

Wells Fargo Selects Charles Scharf To Make History As The First Female CEO Of Major US Bank

Say what you will, but leaving BNY Mellon to run Wells Fargo proves that Charlie Scharf is definitely not a venal careerist.

charles scharf

Wells Fargo CEO Sees Even Fewer Qualified Black People Than Its Board Saw Women Qualified For His Job

Affirmative inaction beneficiary Charlie Scharf doesn’t understand why he only wants to hire white people.

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Wells Fargo Trying To Look Like More Successful, Less Scandal-Ridden Bank

Charles Scharf used to work for Jamie Dimon, so he has a keen eye for the differences between their two firms.

Wells Fargo.Insane

Wells Fargo May Finally Get To Spend That Rainy Day Fund

All at once. In the form of some very large checks to the Justice Department and SEC.