A Group of Wachovia (Now Part of Wells Fargo) Customers

question 163

Multiple Choice

A group of Wachovia (now part of Wells Fargo) customers filed a class action lawsuit against Wachovia Bank because fraudulent telemarketers had taken money from their accounts and that the telemarketers did so with the knowledge of bank executives who were aware of the fraud but did nothing to stop it. Banks executives insisted that they knew nothing about the thefts. However, internal e-mails released during discovery in the case showed that executives were discussing the frauds and providing warnings. "YIKES!!!!" "DOUBLE YIKES!!!!" "There is more, but nothing more that I want to put into a note." Warning from a Wachovia bank executive to colleagues that the bank had received 4,500 complaints of fraud in two months from customers who had been fleeced of $400 million by marketing firms who paid the bank large fees for access and on returned checks. "We are making a ton of money from them." What test for resolving ethical dilemmas would have helped the executives at Wachovia reach a better decision as they debated the issue on their e-mails?

• A) "I was just following orders."
• B) "This doesn't really hurt anyone."
• C) The Front-Page-of-the-Newspaper Test
• D) "It's a gray area."

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Definitions:

Bargaining Committee

A group of individuals, often from a labor union, designated to negotiate terms of employment, such as wages and working conditions, with an employer.

Hourly Wage

The amount of money paid to an employee for each hour of work performed.

Bill Of Rights

A formal statement listing the fundamental rights and freedoms that are protected and guaranteed to individuals, often within a legal or governmental context.

Democratic Procedures

Processes that are based on the principles of democracy, allowing for equal participation and vote in decision-making by all stakeholders.