Tag: wells fargo

Greedy Capitalist Pigs Celebrate Massive Tax Break … by Giving Employees More Money

 

As soon as the House and Senate had passed the big tax reform bill Wednesday, AT&T made a big announcement. The telecom leviathan said it would give more than 200,000 US employees a special bonus of $1,000. AT&T also increased its US capital expenditures budget by $1 billion.

“This tax reform will drive economic growth and create good-paying jobs,” CEO Randall Stephenson said. “In fact, we will increase our US investment and pay a special bonus to our US employees.”

An hour later, Fifth Third Bank announced that nearly 3,000 workers will see their pay rise to $15 an hour. The company also said they will hand out $1,000 one-time bonuses to their workforce.

Turning the Tables on Sen. Warren

 

sen warrenSen. Elizabeth Warren grilled Wells Fargo’s CEO when he appeared before Congress Tuesday. The bank’s head, John Stumpf, came to Washington to answer for Wells Fargo employees who created millions of unauthorized bank and credit card accounts in the past five years. This earned the bank extra fees, of which the customers were unaware, while making Wells Fargo look like a great investment to Wall Street.

Warren thinks that the bank firing the 5,300 employees responsible is just window dressing. “You should resign,” Warren told Stumpf. “You should be criminally investigated.” A video of the exchange captivated struggling Americans angry at the elites who keep getting richer while they’re looking for change in their sofa to keep the lights on.

The Pitfalls of Management by Measurement

 

shutterstock_144543284The news is full of Wells Fargo’s follies since they got hit with fines totaling $185 million last week. What happened was a case of management by measurement. Wells Fargo employees were heavily pressured – including threats of job loss – to rack up customer “solutions,” which translate into selling additional services to the bank’s customers that included additional bank accounts and bank credit cards. In order to meet the strict quotas that management had imposed, employees opened accounts for customers without first receiving customers’ permission or informing them.

Though this practice was widespread (some 5,300 Wells Fargo employees have been fired since 2011 for opening fake accounts), it does not appear to have been the result of a conspiracy. Rather, it was an example of spontaneous order that emerged from employees acting in their own best interests — in this case, reducing the pain of management pressure — given the incentives and constraints imposed by the system. In an article appearing on Bloomberg, Matt Levine explains how this sort of thing happens:

Two basic principles of management, and regulation, and life, are:

Member Post

 

https://www.youtube.com/watch?v=DxDsx8HfXEk SSM is good wholesome stuff. It is heartfelt & moving. It is soft-focused where it needs to be. It is the American flag in pastel colors. It is gentle, but it has a sense of humor, but it never hurts your feelings. It is who you are–if you were perfect. Preview Open

Join Ricochet!

This is a members-only post on Ricochet's Member Feed. Want to read it? Join Ricochet’s community of conservatives and be part of the conversation. Get your first month free.