Wells Fargo fraud
Friday, September 9, 2016 at 06:23PM
Palisade Financial

I've been reading up on the Wells Fargo fraud the last couple of days. All I can say is wow. It is hard to fathom such behavior from so many employees. This is a blatant example of misconduct, but throughout the industry you can find people who's actions are being impacted by their incentive structure. If the Wells employees have no incentive to open fake accounts, would they have done it? If the private REIT, annuity, or structured product salesperson did not receive a commission, would they be so keen on selling you questionable products?

It's one of the reasons why fee based advisors such as myself have grown in popularity. In my case I receive no compensation other than my fee. And I can assure you I will not be pressuring anytime to open up 6 different savings accounts anytime soon. For more info on the Wells Fargo findings:

http://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/

 

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