12 WellsFargoand otherfiascos

STORYBYGEORGEAVALOS

Abanking scandal, exploding phones and the ongoingroller coaster of PG&E rate changes were amongthe top stories raising the ire of consumers this year.

Perhaps the worst wastheWells Fargo Bank scandal in which employees secretlyopened millions of bogus credit and bank accounts to meetsales targets,and then funded manyof those accounts with customers’money.John Stumpf, Wells Fargo’schief executive officer, became a poster child for corporategreed as he was harshly grilled by both Republicans and Democratsduring testimony before congressional committees in Washington

TheSan Francisco-based banking giant had retainedasterling reputation despite the black marks thattarnished the financial services industryafter the financial crisis and the housing bubble of 2008 that led to the Great Recession. Now thatreputation is, at best,sullied. At worst, it’sin tatters.

Consumers suffered defeats, but also a victoryinconnection with PG&E. In March, gas bills jumped as a result of prior regulatory decisions, and consumers learned future bills were likely to increase even more. Then in June, aPUC decision slapped consumers with double-digit increases in their monthly gas bills.

InAugust, PG&E wasconvicted by a federal juryon six criminal charges stemming from the company’sactions before and after the 2010 San Bruno pipeline explosion, which killed eight people and leveled a residential neighborhood. While the financial punishment was relatively small, it was nevertheless seen as asymbolic victory,andit laid the foundation for reforms atboth the utilityand the PUC, the agency

Keymoments

Feb.20: Bay Areagasoline pricesreach theirlow ofthe year,falling to $2.35 a gallon.In July,the prices will reach their high at roughly $2.95.

Aug.9: Ajury convicts PG&E on sixcriminal chargesthat the utility committed illegal actions relatedto itsgas pipelinesystem before the San Bruno explosion and then obstructedthe federal investigation of the deadly blast.

Aug.31: Shipments of the Samsung Galaxy Note7are delayedafterthe consumer electronics giant beginsreceiving reports that the batteryin the phone is exploding.

Sept.8: Wells Fargo is hit with$185 million in fines for a years long practice in whichemployeesopened an estimated 2 million bogus bank and credit accounts and fundedthose accounts with customers’ money without permission.

Sept.12: The Samsung Galaxy Note7is officially recalled in the U.S.

Oct.26: Despite earlier assurances that consumerswould benefitlongtermfrom the Diablo Canyon nuclear plant shutdown,PG&E confirms that customers face a short-term1.6 percentincrease in electricity bills.

responsible for PG&E’soversight.

Meanwhile, in whatwas a product disasterfor theages,Samsung toppled into hot water with its Galaxy Note 7,asmartphone whose battery overheated at times, triggering fires, even explosions. The company,its ill-fated deviceand consumersall suffered through recallsand production delays until thegadgetwas eventually scrapped altogether.

However,there wasatleast one more piece of good news: Thanks to challenges by ConsumerWatchdog, Californians won aseries of victoriesamountingto $250 million in savings for home and auto insurance rate savings and refunds.

GAVALOS@BAYAREANEWSGROUP.COM