A banking scandal typically involves unethical or illegal activities within a financial institution, often leading to significant financial losses for customers and investors. These scandals can include fraud, embezzlement, or manipulation of financial statements, undermining public trust in the banking system. One notable example is the Wells Fargo scandal, where employees created millions of unauthorized accounts to meet sales targets. This breach of ethics resulted in hefty fines and a damaged reputation for the bank, highlighting the importance of regulatory oversight in maintaining the integrity of the banking industry.