Make Sure Employees Have Stake In Business; Wells Fargo’s Crisis

Some economists think that central banks will not be able to raise rates unless there are major political and policy changes. They say that current policies of higher tax rates and significant regulation are suppressing economic growth. And central banks look for signs of growth to justify rate increases.

Without policy changes, we might not see significant growth and we could remain in this low-rate stalemate for a long time.

Wells Fargo is going through major turmoil (huge fines and bad press) b/c rogue employees opened up so many unauthorized accounts.

What is interesting is that the unauthorized accounts did nothing to benefit the bank overall, b/c it cost Wells so much to close the accounts and appease the customers.

According to the WSJ, most of the rogue employees were not career types but were at Wells Fargo primarily to collect a paycheck and benefits.

This was just another reminder to us that it is best to hire full-time employees who definitely have a stake in the success of the overall business. Incentives need to be tied to the success of the business as a whole – profit sharing, volume bonuses, etc. Share the wealth :).

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646