Thursday, July 19, 2018

Wells Fargo proves once again why you shouldn't keep your money or wealth in a bank

Back between 2011 and 2014, JP Morgan was fined 12 times for illegal financial activity which included Foreclosure Abuse (Robo-signing), illegal credit card practices, and Libor rigging which caused interest rates and payments to be increased for 10's of millions of Americans.  And in all of these activities, very few customers who were defrauded ever received compensation for being a victim of their schemes.


But sadly this institution is not the only one to defraud their customers in more than one way.  And despite the fact that an identity theft and credit card scandal by Wells Fargo led to the resignation of their CEO and several managers, it appears that fraud is simply the cost of doing business for this bank as a new scandal has emerged a little more than a year after their last major one.

Given the seemingly unceasing stream of scandal that has flowed out of Warren Buffett's favorite bank, Wells Fargo, it's hardly surprising that after doing everything from illegally repossessing the cars of American soldiers to fraudulently "cross-selling" credit cards and other products to millions of customers, the bank is now being called out for adding opaque products to the accounts of hundreds of thousands of customers - for services like pet insurance and legal services - without first explaining how to use them. - Zerohedge
When you couple in the fact that since 2010 when the Dodd-Frank banking Reform Act was passed, your money and deposits are no longer considered yours by the institution, and are instead both liabilities and capital they can use to leverage their own investment portfolios while also being allowed to confiscate (rehypothicate) that money should their speculative bets create insolvency.

As the world continues to accumulate record debt levels, economies begin slowing down thanks to central banks tightening their monetary policies, and the ongoing housing bubble begins to burst, there will not be many tangible warning signs telling you when the next financial crash or collapse will occur.  But even then there will be no excuse because everyone will have had 10 years or more to find one of the many alternatives out there to store and use their money that isn't held in a bank that treats its customers like a resource simply to be squeezed.

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