Wells Fargo New Account Openings Down 44%; Credit Card Applications Plunge By 50%

Tyler Durden's picture

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.

Earlier today, we finally got the first glimpse into the full scope of the exodus, when the largest US mortgage lender revealed its latest retail metrics, and they were a disaster. The bank reported that retail customers opened 44% fewer new accounts in October relative to a year ago, after the bank’s record-setting settlement with regulators over its cross-selling scandal which cost ex-CEO John Stumpf his job.

The drop was 27 percent compared with September, the bank also reported, while new credit-card applications crashed by 50% to 200,000 in October, the first full month since the lender disclosed the settlement on Sept. 8.

The bank took the plunge in new business in stride: "As expected, we continued to see declines in new account openings,” Wells' new CEO Tim Sloan said in the statement. “We remain focused on meeting our customers’ financial needs by providing great service and quality products and will provide our next update in mid-December.”

Additionally, the bank said survey results of consumers' satisfaction with their most recent visit fell to 73.9 percent in October from 77.4 percent a year earlier.

"Because the sales practices settlement was announced on Sept. 8, October data reflects the first full month of impact," Mary Mack, head of Wells Fargo's community banking business, said in a statement.

Since the scandal, Wells Fargo has launched an internal probe, apologized to customers and employees, changed compensation plans and hired a consultant to review sales practices. It has also said it would eliminate sales goals for its retail banking business sooner than planned.

Former employees have blamed being browbeat into hitting aggressive daily sales quotas for their part in creating the unauthorized accounts.

"We recognize we have work to do and we are focused on strengthening our relationships with existing customers and building new ones with potential customers," Mack said.

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Mark of Zerro's picture

And the stock price of WFC is going up today.  Of course!

Truther's picture

Just like a house of cards, Wells Fargo will crash and burn... In hell

Jim Sampson's picture

Of course there are less accounts, they can't open fraudulent ones anymore.

Arnold's picture

In Western PA they are running radio commercials saying we will not be bad boyz any more.

I'll see if I can find in in the Interwebz.

 

http://www.seattletimes.com/business/wells-fargo-rolls-out-ad-campaign-a...

 

Sad, very sad.

JedClampIt's picture

Bad news = good news, or something like that

Chupacabra-322's picture

No worries here. What ever losses are made up on the back end laundering drug money fot thr Pure Evil Criminal Psychopaths at the CIA & Cartels.

AGuy's picture

" the stock price of WFC is going up today. Of course!"

New name change to take affect soon. WFC will be renamed to Wells Fraud Go.

williambanzai7's picture

The hits keep rolling in!

Truther's picture

Wells Fargo, the new "Chariots On Fire."

DogeCoin's picture

This is why Wells Fargo stock is up. And people wonder why we say the market isn't real and completely rigged.

Ms. Erable's picture

I'd wager those are the same people that still have accounts with Wells Fargo. Stupid is as stupid does.

Rockatanski's picture

my business account is still there, i never did have any fraudulent happenings in over 20 years with them.

i thought about moving banks but what a colossal pain in the ass. all my customers would need to be notified of the new checking account to make ACH payments, the IRS does auto withdrawn for payroll taxes, new checks, new numbers to remember....just too old for that hassle right now.

makes me wonder though, all those times i had calls and tellers trying to sell shit and i just shut them down with NO. if the customer even uttered a "what?" if that was considered a green light to fuck them over?

i tease the tellers these days about the whole scandal. they never know what to say.

chosen's picture

Wells Fargo likes to show a stagecoach rolling across the tv screen.   The Wild West was inhabited by crooks and criminals.  The "lawmen" were often worse than the criminals.  It is fitting that Wells Fargo attaches itself to that tradition.  

Max Cynical's picture

Why they are not down 100% shows the depth of dumb downed Americans.

swmnguy's picture

New accounts, absolutely.  As for existing accounts, well, you get caught up and stuck.  I bailed on the big banks over 20 years ago, when USBank refused to cash a printed paycheck from an employer with USBank accounts, unless I opened a USBank account.  But my wife has had Wells Fargo accounts since she opened a First Northwestern account in about 1980.  

She has recently (finally!!!) moved her money across the street to a credit union, set up her employment direct-deposit and all her other services there, but she still  keeps the minimum in a savings account because she's had a Wells Fargo credit card for 25 years and only has a couple other cards; to close out entirely at Wells would be shooting a big hole in her credit score.  

I happen to think a credit score only matters if you need credit, even though they do use it to set insurance rates and other things that ought to be made open and transparent if not illegal.  Besides, if she needs credit she'd be applying jointly with me most likely, and my credit score opens the door to the best available rates in most circumstances.

Wells should be down 100% on new accounts and new credit cards, absolutely.  And over the next few years, remaining accountholders should do what they can to extricate themselves without doing themselves any harm on Well's account.

Bill of Rights's picture

Funny how all this  before the election, Im calling death watch on  Wells

Soul Glow's picture

I'm sure there is a way to spin this as bullish.

Rainman's picture

50% fewer fake debt slaves !?

Jason T's picture

When you scam your customers with BS accounts .. you are fucked.

The beauty of the free markets is we as consumers have a choice.

 

Dead Canary's picture

SAVE THE BANKS! They are doing Gods work!

( I don't think I can sleep tonight )

Phat Stax's picture

Will the oligarchs ever learn?

Colonel Klink's picture

I worked for them for 5 years. Glad that liar Stumpf is gone. Scumbag sent us an internal letter that said the 25 billion taken was forced upon WF so it didn't "stigmatize" the others who needed to take it. Bunch of bullshit! Left banking after Obunghole bailed out the corrupt banks instead of letting the fraud clear, throwing away a 20 year career. Haven't worked a day since. Fuck'em, let them burn with the rest of the top 10 banks!

insanelysane's picture

Consumers are evil.  We need to have a law where people need to show proof of bank account or receive a tax penalty.  Bank accounts save lives.

Orly's picture

Right...

And Warren Buffet had simply no idea United was going to cancel a giant plane order, either...

How about we do some investigating on this "trading genius"?

:D

ALANBEEKMAN's picture
A guy walks into a Wells Fargo and says to the teller at the window, "I want to open a fuckin' checking account" To which the lady replied, "I beg your pardon, what did you say?" " Listen up dammit, I said I want to open a fuckin' checking account right now." "Sir, I'm sorry but we do not tolerate that kind of language at Wells Fargo!" The teller left the window and went over to the bank manager and told him about her situation. They both returned and the manager asked, "What seems to be the problem here?" "There's no damn problem," the man said, "I just won 100 million in the MegaMillions lottery and I want to open a fuckin' checking account in this damn bank!" "I see sir," the manager said, "and this bitch is giving you a hard time?"
Seasmoke's picture

And yet John Stumpf still got away with stealing my townhouse with post dated assignments. Robo signed docs. Incorrect balances. (And those are just what I found out about on my own !!!)

thecondor's picture

I hear ya.  Though my situation was a little different than yours, but i see what you are saying.  All these fuckers should have gone to jail.  And we given our houses back.  Fucking criminals. 

boattrash's picture

Well shit, considering THEY were opening 42% of their new accounts, and 48% of their new credit cards, that's actually only a 2% drop in each category.

CHoward's picture

I'm shocked I say - shocked!  I love the warm and fuzzy feeling I get every time one of their commercials come on the boob tube.  They make we want to rob other people and put their money in Wells Fargo!

Cluster_Frak's picture

Buffett will drink some baby blood and make it all go away.

thecondor's picture

I wish he would drink some arsenic. 

WillyGroper's picture

need to make amorica great & keep the circle of money flowing...support monSATAN/bayer, round-up professional strength.

Snaffew's picture

he'll need to suck the nursery dry in the local hospital just to keep his black heart going...one suckling of baby blood doesn't seem to do much for this demon and his sidekick Charlie Munger.  The two of them combined have about 6 months to live.

thecondor's picture

This is what happens when the .gov make a business take bailout funds.  The culture of corruption is spreading. 

TalkToLind's picture

These mother fuckers will have to pay me to take part in their usury schemes. Do you remember back when a $100 sign-up bonus was the norm for opening a "new" credit card account?  Now TalkToLind demands a $300 sign-up bonus. That's right, it will cost you $300 to put your stupid credit card in my wallet. Make that ship happen bitchez otherwise prepare for your credit ponzi to collapse. 

SilvaDolla's picture

Nelson from the Simpsons says, "Haa-ha!"

I Write Code's picture

Wells, Wells, Wells, three holes in your account.

rosiescenario's picture

Here's hoping that Amazon also gets punished for Bezos elitist political activity with the WaPo.

 

Why do any business with that company when there are many just as good alternatives?

monad's picture

Never fear poor disenfranchised organized child felons, suckenator Harris will bail you out, and shield you from prosecution!

Miskondukt's picture

Am closing my WF account today too. I know, I should have ages ago so I accept any troll comments. 8) 

aliens is here's picture

Sure the CEO is fired but so what. The bastard walked away with millions. What about the people he screwed over?

konadog's picture

Change the stock ticker from WFC to FUBAR.  At least it would be accurate.

Pop3y3too's picture

How much you want to bet that John Stumpf is on the short list with Dimon for Treasury Secy?

 

Same as it ever was.

BunkerZee's picture

And no one goes to jail, yet again, no matter how egregious the violation of the law is.

Banker law is far above peasant law.

nickt1y's picture

Who needs customers when your backstopped bt the Federal Government.

yankinwaoz's picture

Wait a sec! Perhaps these are the right number all along. Once they remove the fake churn accounts cause by insane sales pressure, how much was real? Perhaps only 44% new accounts and 50% credit cards? That would mean that over half of the "new" accounts and cards were fake.

Grandad Grumps's picture

Of course they are down. Their employees are no longer creating fake accounts.

gregga777's picture

The entire banking model is a criminal enterprise. Everything they do is criminal. The fines they pay to the government are merely their cost of operating their criminal businesses.