Topline
Numerous Wells Fargo online banking users complained of not seeing scheduled paychecks hit their accounts Friday, which the bank blames on a technical issue that does not appear connected to Thursday’s bank stock crash.
A pedestrian walks by a sign outside of a Wells Fargo Bank branch on July 16, 2008 in San Francisco. … [+]
Key Facts
It’s not clear what might be causing the direct deposit issue or when it might be resolved, but Wells Fargo posted a message at the top of its online banking app saying: “If you see incorrect balances or missing transactions, this may be due to a technical issue and we apologize.”
The issue made Wells Fargo one of the top trending terms on Twitter early Friday afternoon, while it registered the most complaints of any service on DownDetector starting early Friday morning, which has persisted for hours into the afternoon.
The bank did not immediately respond to a request for comment from Forbes.
Crucial Quote
“Your accounts continue to be secure and we’re working quickly on a resolution,” Wells Fargo assured customers on its app.
Key Background
The glitch comes at a tumultuous time for banks in the U.S., capped by the federal government taking control of Silicon Valley Bank on Friday morning, marking the largest American bank failure since the 2008 financial crisis. SVB’s stock plunged more than 60% on Thursday after it reported reduced customer deposits, which put a strain on other banks despite no obvious solvency issues at financial giants like Wells Fargo. The benchmark KBW Bank Index declined more than 8% at times Thursday—its largest fall since June of 2020.
Tangent
Wells Fargo has been plagued with a series of legal troubles over the past several years, including a fake accounts scandal where employees created millions of checking and savings accounts for real customers without their consent to meet quota goals set by top executives. The company agreed to pay a $3 billion fine for the fake accounts in 2020 and former CEO Charles Scharf was banned from ever working in the banking industry again.
Further Reading
SVB Shut Down By California Regulator After Bank Stocks Crash Amid Turmoil (Forbes)
Dow Plunges Over 500 Points As Bank Stocks Collapse (Forbes)
Wells Fargo Forced To Pay $3 Billion For The Bank’s Fake Account Scandal (Forbes)
Source: https://www.forbes.com/sites/nicholasreimann/2023/03/10/wells-fargo-customers-report-missed-paychecks-due-to-apparent-glitch/