The mind-blowing stupidity of Wells Fargo

The bank wasn't even poised to make big money from its account scandal. Far from it.

We'll take you over a cliff.
(Image credit: Illustration | Image courtesy iStock)

Wells Fargo is in hot water. U.S. regulators announced Thursday that the bank has to pay $2.5 million in customer refunds and $185 million in legal fees. It's comeuppance for some truly breathtaking stupidity on the bank's part.

The problem began with what's called "cross-selling." Your average big corporation has a lot of customers, but also a lot of different products and services. Wells Fargo, for instance, is one of the biggest banks in the country, and its offerings run the gamut from credit and debit cards, to online banking, to savings and checking accounts and more. Usually, most of a company's customers only use one or two of those products and services. But since it's already gone to the trouble to acquire those customers, it presumably behooves Wells Fargo and other big firms to get their employees to hawk the rest of their products and services to those customers as well.

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