When news of Wells Fargo’s phony account scandal first broke, the bank, analysts, and even investors thought it wouldn’t dent earnings.
But as the furor surrounding the opening of some 2 million deposit and credit card accounts without consumer knowledge at Wells Fargo continued to mount, the mega-bank’s reputation began to plummet—and more than a few customers began jumping off the wagon. As a result, Wells could lose as much as $212 billion in deposits and $8 billion in revenue over the next year and a half, according to a study done by consulting firm cg42.