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It’s been some time since information broke in 2016 that Wells Fargo had created tens of millions of fraudulent accounts with out buyer consent. However the fallout isn’t over: On Tuesday, Wells Fargo reported a 53% drop in year-over-year fourth quarter revenue, which was pulled down by quite a lot of authorized charges, together with these related to the scandal.
And the financial institution’s fame remains to be taking a success.
Wells Fargo is probably the most disliked massive monetary agency in America amongst traders, in accordance with a Fortune/Civis Analytics survey* of greater than 1,300 traders. The financial institution has the very best share of traders viewing it unfavorably (42%), properly above the second and third most unfavorable monetary corporations, Financial institution of America (29%) and Citigroup (22%). The excellent news for Wells Fargo is that 44% of traders rated it favorably.
After the faux accounts scandal, the financial institution was fined $185 million by regulators. Within the fall of 2017, then-Wells Fargo CEO Tim Sloan spoke at a Senate Banking Committee, the place he was informed by Senator Elizabeth Warren that he must be fired because of the “rip-off.”
Then in 2018, the financial institution was fined $2.1 billion by the Justice Division for dangerous mortgage practices, together with allegedly misstating debtors’ incomes, main as much as the 2008 monetary disaster. Later that very same 12 months, Wells Fargo agreed to pay $575 million to all 50 states over its gross sales practices, together with opening bogus accounts. And Democratic presidential candidates like Warren proceed to make use of Wells Fargo as a punching bag alongside the marketing campaign path.
“Wells Fargo’s new advertising and marketing efforts are high-quality and in the precise route, however up to now haven’t gone far sufficient to alter perceptions,” says Tim Calkins, a professor of promoting on the Kellogg College of Administration at Northwestern College. This month marks one 12 months since Wells Fargo launched the advertising and marketing marketing campaign “Re-Established” to rebuild its model. “That is clearly dangerous information for Wells Fargo. Notion is so vital for monetary corporations: Their enterprise is all about belief.”
Wells Fargo declined Fortune’s request for remark.
*The Fortune/Civis Analytics survey was performed amongst a nationwide pattern of 1,315 traders throughout December 19-20, 2019. We requested these traders to charge their favorable and unfavorable views of 10 of the nation’s largest monetary corporations. We included a mixture of banks, on-line brokerages, and different monetary companies firms. The nationwide pattern of traders has been weighted for age, race, intercourse, schooling, and geography.