←back to thread

1895 points _l4jh | 1 comments | | HN request time: 0.262s | source
Show context
bogomipz ◴[] No.16729876[source]
>"And we wanted to put our money where our mouth was, so we committed to retaining KPMG, the well-respected auditing firm, to audit our code and practices annually and publish a public report confirming we're doing what we said we would."

It's worth pointing out that KPMG was Wells Fargo's independent auditor while the bank recently committed fraud on a massive scale by creating more than a million fake deposit accounts and 560,000 credit card applications for customers without their knowledge or approval.[1]

Calling KPMG a "well-respected auditing firm" when they failed to detect over a million fake bank accounts is a joke. See:

https://www.reuters.com/article/wells-fargo-kpmg/lawmakers-q...

[1] https://www.warren.senate.gov/files/documents/2016-10-27_Ltr...

replies(10): >>16729897 #>>16730009 #>>16730105 #>>16730119 #>>16730193 #>>16730271 #>>16730746 #>>16730782 #>>16731153 #>>16731246 #
thaumasiotes ◴[] No.16730119[source]
> the bank recently committed fraud on a massive scale by creating more than a million fake deposit accounts and 560,000 credit card applications for customers without their knowledge or approval.

Suppose you were a Wells Fargo depositor and a Wells Fargo teller opened a fake account in your name without consulting you. What harm did you suffer?

How massive is this fraud if you measure it in a more useful way than "number of accounts"?

replies(2): >>16730202 #>>16730294 #
1. function_seven ◴[] No.16730202[source]
The harm to consumers is phony credit history and random fees on many of those fake accounts.

The harm to WF shareholders was inflated metrics inflating the value of the company.

The whole point of KPMG was to validate these types of metrics for shareholders.