NEW YORK (Reuters) - Wells Fargo & Co saw a drop in consumers opening checking and credit card accounts in February, the bank said on Monday, marking the sixth straight month of decline since a sales scandal rocked the bank last year.
Since Wells Fargo’s decade-long fake account fiasco came to light in September, analysts have warned that revelations about bank staffers opening millions of unauthorized accounts would result in consumers shying away from
REUTERS/Noah BergerWells Fargo doesn't deserve a lot of credit for the way it's handled the fallout from its fake-account scandal, which came to light last September, but the bank is trying to make things right. To this end, every month, Wells Fargo reports nearly two dozen metrics that shed light on the latest activity in its retail branches.
As Wells Fargo continues to grapple with the consequences of its potentially decade-long fake account fiasco, we’re beginning to see what the future might hold for the banking giant: a large loss both financially and in its customer base.
While it won't come as a surprise that Wells Fargo customers were disappointed to learn their bank was embroiled in the biggest banking scandal since the financial crisis which shattered the bank's "folksy" image, so far there were no definitive numbers to frame the post-settlement reaction.
A regulation requiring proof of personal income in credit card applications has justly been described as “anti-housewife”. The rules hurt the ability of nonworking spouses to access credit and build their own independent credit standing. There is a smart solution to the problem—but it’s not the one currently being proposed by the Consumer Financial Protection Bureau. Before getting to that, a bit of background is in order.