Displaying items by tag: scandal
Wells Fargo Has a Major Wealth Management Scandal on its Hands
(San Francisco)
In what looks like a continuation of the recent meltdown of the Wells Fargo brand, a new scandal has come to light. The company is having several senior executives resign as a new Justice Department investigation is underway into bad practices in its wealth management unit. The accusations surround overcharging customers and inappropriate advice to wealth management clients.
FINSUM: Who knows how big this one might blow up? The scandal in its core banking business had not really affected the wealth management unit so far, but that may change.
Apple Facing DOJ Probe Over Phone Speed Scandal
(San Francisco)
The huge public pushback against Apple’s revelation that it intentionally slowed older iPhone speeds to keep them from crashing is now turning into an ugly, and possibly legal, scandal. The US Department of Justice and the SEC are now launching probes into Apple’s handling of the situation. While the DOJ probe will likely look broadly at behavior, the SEC is looking into whether Apple violated securities laws with regard to its disclosures about software updates.
FINSUM: We have a feeling there is a big fine on the horizon for Apple. The bigger question is whether this hurts their public image and could spark the beginning of the end of the Age of Apple.