Principal-agent problem

https://www.americanbanker.com/news/fed-wont-lift-wells-fargo-cap-until-deficiencies-are-fixed-powell

On October 21, 2019 Charles Scharf officially assumed the role of CEO. Can he succeed in restoring the reputation of Wells Fargo as the bank that always does the right thing?
You are going to advise Mr Scharf on a key issue. What about the incentive system employed by Well Fargo resulted in massive creation of fake accounts by the retail operation and why did it only get worse from there? As you dig into this remember Froeb’s rule from Chapter 1″Avoid the temptation to think about the problem from the employee’s point of view…{and ask} how does the organization give employees enough information to make good decisions and the incentives to do so?”