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4 pages/≈1100 words
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Business & Marketing
English (U.S.)
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Position Paper About Wells Fargo And Co. Henry Wells And William Fargo (Essay Sample)


This project is designed to have the student analyze and incorporate an issue of current affairs into a thoughtful and insightful five-page position paper. Your goal is to effectively “argue” your position on the subject and convince the reader (me) that you are on the right side of the issue. Further details of this project will be discussed in class.

Intro ParagraphAfter the “fake accounts” and “Over-charged on auto-insurance” scandals, regaining  market competitiveness and recapturing high position in the industry, must be a difficult goal to Wells Fargo.
2.Body of argumentsa) Background Information This section of your paper gives the reader the basic information he or she needs to understand your position. This could be part of the introduction, but may work as its own section.   
Intro of wells fargo and their competitiveness -Wells Fargo & Company is a diversified financial services company that provides banking, insurance, investment, mortgage and consumer finance services. The company separates its businesses into three main segments: community banking; wholesale banking; and wealth, brokerage and retirement. Large economies of scales12% of market share and major competitors are JPMorgan and BOA.Wells Fargo has about 9,000 retail branches, about 12,000 ATMs and an estimated 269,200 employees, High consumer confidence-Community banking is the largest business segment, generating about 60.0% of company revenue. It serves small-business clients, retail customers and high net worth individuals. Largest banking in the industry.  serving more than 70.0 million customers.


Position Paper
Wells Fargo and Co. has found itself in the center of controversy after the "fake accounts" and "Over-charged on auto-insurance" scandals in 2016. The company's employees orchestrated these two frauds between 2011 and 2016, and this has tarnished the reputation of the company beyond repair, drastically affecting its operations (Corkery). For instance, the opening of the new accounts has dropped by approximately 40%, and the growth rate of the bank has lately flattened (Corkery). As a result of these scandals, the company has abandoned its expansion plan and now wants to close over 400 branches by the end of this year. Hence, it is apparent than after revelation of fraudulent activities, it will be difficult for the company to regain the glory it has enjoyed for the last couple of years (Corkery). For now, the company is mortally wounded, and it desperately needs to fast reclaim the public's confidence.
Wells Fargo was established in 1852 by Henry Wells and William Fargo to satisfy the essential human needs such as connecting one client to another or one market to another through transportation of goods, funds, and services in a fast and secure manner across long distances. Wells Fargo and Co. is a diversified company divided into segments such as community wholesale banking and Brokerage businesses that offer financial services to over 70 million clients across the world (Laura and Katherine). Its headquarters are located in San Francisco, United States. By asset, it is third largest firm in the world after overtaking the Citigroup Inc. in 2015. In terms of market capitalization, it is the second largest bank after JPMorgan. By December 2015, the firm had more than 9000 retail branches with estimated 12000 ATMs (Laura and Katherine). Currently, Wells Fargo operates in 35 countries across the world. The bank has been one of the best cross-sellers of financial services such as insurance, personal loans, credit cards and wealth management services. Some of its business-based services include lending, venture capital, commercial banking services, equipment leasing and investment banking. Further, the company has performed well in online banking after becoming the only financial service company offering internet banking in 1995. The company boasts substantial economies of scale, commanding a 12% market share in the commercial market, but faces stiff competition from BOA and JPMorgan Chase (Laura and Katherine). Among the three business segments mentioned above, community banking is still generating the largest portion of the company's total revenue and yields approximately 60.0% of the total income (Laura and Katherine). Wells Fargo and Co. has enjoyed tremendous success and an excellent reputation for several years until it was hit by two massive scandals between 2011 and 2016. Before these scandals, the company commanded a good chunk of the market share.
In 2011, employees in Wells Fargo engaged in fraudulent activities of ordering credit cards for pre-approved clients without the knowledge of consumers (Corkery). Workers used their personal contact information to fill out the requests in an attempt of preventing customers from discovering the hoax. Also, employees created fake savings and checking accounts, a process that in some instances involved the transfer of money from the client's accounts. They used a method known as pinning to create such additional products. The strategy works by setting the pin of the customer to "0000", which makes it possible for the bankers to easily control the accounts and can enroll them in programs such as online banking (Corkery). Wells Fargo has also been accused of applying improper charges on its auto-loan clients between 2012 and 2016, where it illegally accumulated income from...

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