Question

How does losing one's home to foreclosure affect the accumulation of wealth ?

How does wealth affect other aspects of ones life?

Aside from dealing with the fine, what should Wells Fargo do ?

Answer 1

1.

Losing one’s home due to the foreclosure takes place if debt or loan is not paid on time. So, foreclosure leads to the bad reputation to the person whose home is lost due to the foreclosure. It negatively affects his ability to create wealth in the future as employers offering him the jobs may go for the background credit history checks and can be suspicious about him. Further, in business also, he will find it very difficult or get credit from suppliers and vendors in the market. So, wealth creation and accumulation are hampered of that person.

2.

Wealth brings ability to fulfil the needs and wants of the person and can create demand in the economy. Besides, wealth helps the person to realize the plans used to ready the person and the next generation to consolidate the wealth and invest in other avenues to grow it. The person can also fulfil the different needs that can bring satisfaction as well as the community development.

3.

Wells Fargo should do the following:

a. Bring strong ethical policies and corporate governance to prevent any kind of discrimination in any scope

b. Setting up the accountability of the management and top executives to bring necessary compliances

c. Contribute in community development focused upon minorities, African American people and other weak ethnic group