Wells Fargo second FTX-CEO of Ripple
2022.12.22 06:59
Wells Fargo second FTX-CEO of Ripple
Budrigannews.com – Ripple CEO Brad Garlinghouse has attempted to bring attention to yet another case involving the wrongdoings of traditional finance in the midst of the heated news coverage of the FTX scandal. According to Garlinghouse, the Wells Fargo bank’s $3.7 billion mismanagement penalty was viewed as “barely a blip on the radar.”
In a post that he made on Twitter on December 21, the CEO of Ripple expressed his concern regarding the lack of public interest in the Wells Fargo case:
The world is (appropriately) outraged by SBF and FTX’s fraud, but when Wells Fargo mismanages billions in customer funds as well, it’s barely a blip on the radar. Food for thought…. pic.twitter.com/uHnumn4Ryi
— Brad Garlinghouse (@bgarlinghouse) December 21, 2022
Wells Fargo was fined $1.7 billion and ordered to pay over $2 billion in redress to customers by the Consumer Financial Protection Bureau (CFPB) on December 20. The conduct of the bank, according to the CFPB, resulted in financial losses totaling billions of dollars and costing thousands of customers their homes and automobiles.
Over the course of several years, Wells Fargo routinely billed its customers for erroneous charges to their checking and savings accounts, unauthorized surprise overdraft fees, and improper fees for auto and mortgage loans. In the case, 16 million customers are affected.
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Director of the CFPB, Rohit Chopra, stated in his statement:
“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families. The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. This is an important initial step for accountability and long-term reform of this repeat offender.”
It wasn’t the first time that one of America’s largest banks broke the law and hurt customers. The Consumer Financial Protection Bureau (CFPB) assessed Well Fargo, which has a market capitalization of $156.6 billion, a fine of $185 million in 2016 for creating millions of fraudulent savings accounts without the consent of its customers. In 2020, Wells Fargo agreed to settle its potential criminal and civil liability for this activity by paying $3 billion.
