Research On The Case Of Wells Fargo Bank Account Falsification ——Analysis Based On Assessment,Motivation And Internal Control

With the continuous development of the world economy,the competition among commercial banks has become increasingly fierce,and the application of assessment and incentive mechanisms has become more extensive,and whether this incentive method is appropriate and whether the bank’s internal control system can prevent the resulting risks,This is worth our thinking.This article takes the Wells Fargo account fraud case as an example to conduct an in-depth study on the assessment,incentives and internal control of commercial banks,and provide reference and thinking for the management and prevention of operational risks of commercial banks in my country,so as to avoid repeating the same mistakes.Following the outbreak of the subprime mortgage crisis in 2008,global banking industry has undergone major reforms.As a benchmark company that has escaped the subprime mortgage crisis,Wells Fargo has been favored by customers for its stable performance and unique community banking business.However,in September 2016,the US Consumer Financial Protection Bureau（CFPB）disclosed Wells Fargo’s five-year history of account fraud,which made Wells Fargo fall from the altar.So,what has turned Wells Fargo from a "financial model student" into a "fraud madman" ? What can my country’s banking industry learn from it?These issues are worthy of our in-depth thinking and digging.The commodity that the bank operates is currency,its risks are quite different from those of other industries in the market.Only through thorough analysis of major banking cases can we have a deeper understanding of the banking industry,discover and solve problems.If you compare Wells Fargo to a car,the assessment and incentive mechanism is like a throttle,and the internal control system is like a brake.Only when the throttle and brake are well coordinated,the car will drive steadily.Starting from the assessment,incentive mechanism and internal control system,this article deeply explores the root causes of the Wells Fargo Bank scandal,and proposes ways to strengthen the incentives and constraints of the banking industry according to the current situation of the banking industry.Finally,the warning effect of domestic commercial banks is summarized from the Wells Fargo account fraud case.Starting from many aspects,it puts forward suggestions for the establishment of appropriate assessment,incentive mechanisms and internal control systems,in the hope that my country’s banking industry can go further and achieve better development.