Wells Fargo says Bitcoin is too risky for clients, paying $ 575 million fine to scam them
Wells Fargo – the third largest US bank with $ 2 trillion in assets – will pay a $ 575 million settlement after admitting that it systematically withdrew its own customers for 1[ads1]5 years. Ironically, fines come only months after the bank giant has rejected bitcoin as a risky investment.
According to a nationwide federal survey, Wells Fargo admitted that employees opened more than 3.5 million shame, unauthorized bank and credit card accounts with customers & # 39; the names between 2002 and 2017.
The Bank illegally charges its customers for various financial services that they never signed up for, such as life insurance policies and security protection insurance on millions of auto loans.
Employees claimed that they were involved in this widespread fraud because they were afraid of losing their jobs if they did not meet Wells Fargo's aggressive sales targets.
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 audit program to ensure that anyone illegally charged for a service they never authorized is refunded.
The revelation of this weak scheme in 2016 led to the resignation of Wells Fargo's CEO at that time, John G. Stumpf.
Under agreement with the Consumer Financial Protection Bureau, Wells Fargo is still conducting ongoing investigations from the Securities and Exchange Commission, the Justice Department and the Department of Labor, according to its latest securities deposit.
Wells Fargo has racked up more than $ 2 billion in fines since the fake accounting scandal was revealed in 2016.
Wells Fargo to $ 575 million in paying countries to settle customer failures; Last settlement covers retail sales practices and auto loans, mortgage fees https://t.co/xrY4jaAXy5 pic.twitter.com/xKveGD6eKD
– Barry Ritholtz (@ritholtz) 28. December, 2018
California lawyer general secretary Xavier Becerra burned Wells Fargo for his gross breach of the Consumer Protection Act.
In a December 28, Becerra stated that Well Fargo's inevitable abuse of its own customers undermines consumer confidence in the banking system. 19659002] "Instead of protecting their customers, Wells Fargo exploited them and signed them for products – from bank accounts to insurance – which they never wanted," Becerra said.
This is an incredible breach of trust that not only threatens customers who depended on Wells Fargo but trust in our banking system. Wells Fargo was executed illegally and scandalously.
Irony Alert: Wells Fargo Shades Crypto
Ironically, in June 2018, Wells Fargo forbade its customers to use their cards to purchase cryptographic baskets, which CCN reported. The ban was adopted just as the bitcoin bear market went into overdrive.
In a statement, Wells Fargo says "multiple risks associated with this volatile investment" for its decision.
"Customers can no longer use Wells Fargo credit cards to buy cryptocurrency," a bank representative said in a statement. "We are doing this to be consistent across the Wells Fargo business because of the many risks associated with this volatile investment."
Many in the cryptic society say that this latest bank scandal is yet another example that highlights the epic error in centralized financial institutions.
Between this and the Federal Reserve's latest interest rate increase (the fourth in 2018), bitcoin evangelists say it's time to dump corrupt older banking systems.
Wells Fargo pays over $ 500 million to stop all 50
Small penalties given to the bank made $ 88 billion in revenue last year.
Long Bitcoin, Short the Bankers!
– Pomp ? (@APompliano) December 28, 2018
Guess who does not have branch employees who can cause massive injuries due to their greed and incompetence? Bitcoin. #Crypto #Blockchain $ BTC
https://t.co/B6EJsJZqjQ
– Cyber Lion (@CyberLionWeekly) December 28, 2018 [19659025] Wells Fargo's $ 575 million settlement closes outfits from 50 states on fake accounts. It is clear that the older industry, which is incredibly regulated by countless governments and agencies, will be replaced by a crypto outside the system: #BitcoinCash #BCH
– CoinSpice (@CoinSpice) ] December 29, 2018
Featured image from Shutterstock.
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