The financial giant and possibly criminal fraud enterprise of Wells Fargo is seeing a backlash in its business after months of revelations concerning their fraudulent practices. After paying out $185 million in fines for fraudulently opening millions of fake accounts, and then denying the culpability of the higher ups in the bank’s organization, CEO John Stumpf finally took the golden parachute plunge as a faux sacrificial lamb. That has not helped bring new customers to Wells Fargo, according to CNN Money.
New account openings at Wells Fargo (WFC) plummeted 44% in October compared with last year, the bank said on Thursday. Things also worsened since September, when the number of accounts opened by customers fell by 27%.
Wells Fargo said October applications for credit cards plunged 50% last month, worse than the 35% drop in September.
How much of this drop is the natural result of terrible press and how much of it is the result of not fraudulently opening up fake “new customer” accounts to pad your numbers remains to be seen. Attorney General Kamala Harris had begun investigations into California-based fraud by the company before replacing Senator Barbara Boxer’s upcoming vacancy. We will see if her old office continues to pursue the big bank.