Wells Fargo, the $ 2 trillion third largest US bank, will pay $ 575 million in compensation after it has admitted that it systematically cheated its own clients for 15 years , Ironically, the fine comes just months after bank giant Bitcoin dismissed it as a risky investment.
Following a nationwide statewide investigation, Wells Fargo admitted that its employees opened more than 3.5 million bogus accounts, unauthorized bank and credit card accounts with customers "names between 2002 and 201
The bank subsequently charged its clients unlawful for various financial services products for which they had never signed a contract, such as life insurance and collateral for millions of car loans involved in this widespread fraud because he was afraid of losing his job if he failed to meet the aggressive sales targets of Wells Fargo.
Over $ 2 Billion in Fines since 2016
The settlement will be distributed to all 50 US states and the district of Columbia Wells Fargo will also open a consumer return review program to ensure that any person who is unlawful because of a dia never authorized by them a refund is received.
The discovery of this fraudulent program in 2016 led to the resignation of Wells Fargo CEO John G. Stumpf.
Following its agreement with the Consumer Protection Bureau, Wells Fargo has heard ongoing investigations by the US Securities and Exchange Commission, the US Department of Justice and the US Department of Labor.
Wells Fargo has imposed fines of more than US $ 2 billion on fake accounts in 2016 following the announcement of its scandal.
Wells Fargo pays US $ 575 million to meet claims for damages; The most recent billing covers retail sales practices and car loans as well as mortgage costs. Https://t.co/xrY4jaAXy5 pic.twitter.com/xKveGD6eKD
– Barry Ritholtz (@ritholtz) December 28, 2018
Californian Attorney General Xavier Becerra has Wells Fargo on fire for serious breaches of consumer protection laws.
In a December 28 statement, Becerra said Well Fargo's safe abuse of its own customers undermines consumer confidence in the banking system. "In lieu of protecting its customers, Wells Fargo has taken advantage of them and registered them for products – from bank accounts to insurance – they never wanted," said Becerra customers who relied on Wells Fargo, but trust in ours banking system. The behavior of Wells Fargo was unlawful and shameful.
Irony Alert: Wells Fargo Shades Crypto
In June 2018, Wells Fargo ironically prohibited its customers from using their credit cards to buy cryptocurrencies, CCN reported. The ban was passed when the Bitcoin bear market came to the fore.
In a statement, Wells Fargo cited the "many risks associated with this volatile investment" as one of his decisions.
"Customers can no longer use their Wells to use Fargo credit cards to buy cryptocurrency," said a bank representative in a statement. "We are doing this throughout the Wells Fargo company because of the multiple risks associated with this volatile investment are to be consistent. "
Many of the crypto community say this latest banking scandal is another example of the epic failure of Centralized Financial Institutions.
Between this and the Federal Reserve's recent rate hike (the fourth in the year 2018), Bitcoin evangelists say it is time to relieve corrupt old banking systems.
Wells Fargo paid over $ 50 million to stop all 50 states from questioning their nefarious activities.
Small sentence given the bank generated $ 88 billion in revenue last year.
Long Bitcoin, Short the Bankers!
– Pomp (@APompliano ) December 28, 2018
https://t.co/B6EJsJZqjQ [19659002-CyberLion(@CyberLionWeekly) December 28, 20190 Wells Fargos Comparison of $ 575 million from 50 states for fake accounts. Obviously, the old "adult" industry, which is unbelievably regulated by countless government agencies and agencies, should be replaced by a crypto outside the system: #BitcoinCash #BCH
– CoinSpice (@CoinSpice) December 29, 2018
Selected image from Shutterstock.
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