Ripple CEO likens Wells Fargo’s billion-dollar mismanagement to FTX collapse
Ripple CEO likens Wells Fargo’s billion-dollar mismanagement to FTX collapse
#Ripple #CEO #likens #Wells #Fargos #billiondollar #mismanagement #FTX #collapse Welcome to InNewCL, here is the new story we have for you today:
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Amid the heated news flow over the FTX drama, Ripple CEO Brad Garlinghouse rushed to draw public attention to another case regarding the misdeeds of traditional finance. A $3.7 billion fine for mismanagement at Wells Fargo Bank was treated as “barely a bright spot on the radar,” in Garlinghouse’s words.
Ripple’s CEO expressed concern over the lack of publicity surrounding the Wells Fargo case in his December 21 Twitter post:
The world is (rightly) outraged by the SBF and FTX scam, but when Wells Fargo is also mismanaging billions of customer funds, it’s hardly a bright spot on the radar. Food for thought…. pic.twitter.com/uHnumn4Ryi
— Brad Garlinghouse (@bgarlinghouse) December 21, 2022
On December 20, the United States Consumer Financial Protection Bureau (CFPB) ordered Wells Fargo to pay more than $2 billion in consumer compensation and a $1.7 billion civil penalty. According to the CFPB, the bank’s conduct resulted in billions of dollars in financial damage to its customers, costing thousands of customers their vehicles and homes.
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For several years, Wells Fargo has systematically charged its customers improper fees and interest on auto and mortgage loans, improper overdraft fees, and incorrect charges on checking and savings accounts. In this case, there are 16 million affected customers.
In his statement, CFPB Director Rohit Chopra said:
“Wells Fargo’s unlawful flush-repeat cycle has harmed millions of American families. The CFPB directs Wells Fargo to refund billions of dollars to consumers across the country. This is an important first step in the accountability and long-term reform of this repeat offender.”
It wasn’t the first time one of America’s largest banks has broken the law and harmed customers. In 2016, Well Fargo — with a market cap of $156.6 billion — was fined $185 million by CFPB for setting up millions of fraudulent savings accounts on behalf of its customers without their consent. In 2020, Wells Fargo agreed to pay $3 billion to settle its potential criminal and civil liability for this activity.
