The recent revelations in one of the largest banks in the world and the third largest bank in America is disturbing to say the least. The modus operandi adopted by the employees to achieve the stiff and often impossible targets set by the bosses is abhorring and highly obnoxious.
The employees of one of the largest banks in the world resorting to this kind of fraudulent shortcut methods is unthinkable. What is even more scary is the fact that this fraudulent practices are being perpetrated for many years. Has the humongous size of the bank in some way helped in not unearthing this fraudulent practice by the employees OR is it the crass negligence/failure of control and monitoring mechanisms in the bank is the moot question.
Whatever be the cause, the developments in Wells Fargo do have some definite lessons to draw from, for our policy makers and administrators especially in the wake of mergers. The reason being attributed in favor of merger being the SUPPOSED advantage of the size. Whether the size will make or mar the bank, only time will answer.
K N Krishnan.
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