I literally can’t make this stuff up. Wells Fargo gets a record fine from the Consumer Financial Protection Bureau for creating phony accounts for existing clients. JP Morgan is kicking investment clients with less than $10 million out of the full service private bank.
Traditional banking profits have been squeezed due to the lower for longer interest rate environment and their response is to rip off their customers and/or offer worse service? It’s scary to think about how detached big bank leadership is. It’s almost like they are toeing the line to see how much they can get away with.
This goes back to my comments of the true spirit of a fiduciary. How can big banks put themselves out to be fiduciaries when client facing associates have ridiculous sales goals? Incentives drive human behavior. As big banks prioritize revenue over clients, and incentivize associates to sell, these are the headlines we are going to get.
Just to recap: call centers, black box models, high fees, costly & tax inefficient mutual funds that typically underperform, and ruthless sales culture...where do I sign up?