Stuff They Don't Want You To Know CLASSIC: Wells Fargo's Imaginary Customers
Oct 14, 2025
Discover the shocking scandal behind Wells Fargo's unauthorized accounts. The hosts dive into the banking culture that prioritizes sales over ethics, revealing how impossible quotas led to widespread fraud. Learn about whistleblowers who raised alarms and the true scale of customer harm from millions of fake accounts. The discussion includes the bank's hefty settlements and the broader implications for the banking industry. Plus, get practical advice on how to safeguard your own finances amidst these issues.
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How Banks Actually Make Money
- A bank's core function is to take deposits and lend money, profiting from interest-rate spread.
- Customers matter more when they borrow or in a run, not as passive deposit-holders.
Customers As Revenue Streams
- Retail banks view customers as revenue sources, not primary beneficiaries.
- Banks prioritize cross-selling loans and fee-bearing products because those generate profit.
Cross‑Selling Became Business Doctrine
- Cross-selling turned into an industry metric for retail banks, measuring multiple products per customer.
- Richard Kovacevich (Wells CEO) popularized treating tellers as salespeople and accounts as "products."