Wells Fargo’s Lawsuits Only the Tip of the Iceberg
It began last year as 2 million fake Wells Fargo credit card accounts were uncovered - now estimated to be 3.5 million or more. Following news of the scandal came the firing of 5,300 employees, one of whom Wells Fargo has been ordered by the Department of Labor to rehire and pay remuneration of $575,000.
That’s only the opener into what’s facing Wells Fargo.
What began as the forging of sales data has since spiraled out of control, damaged investor trust, consumer confidence, and the bank's bottom line.
Since the credit card scandal, the bank’s mortgage division has had a class action lawsuit filed for altering the terms of consumer mortgages belonging to those in bankruptcy. The auto insurance arm has also issued a notice stating they’ll be paying $80 million in remuneration to customers wrongly charged for auto Collateral Protection Insurance (CPI).
The Wells Fargo fiasco is not isolated. Financial misconduct in banking is an industry-wide problem.
- In 2015, the Consumer Protection Bureau fined PayPal $25 million for deceptive practices resulting in consumers signing up for PayPal Credit without realizing it.
- In 2016, Santander Bank was fined $10 million for charging customers overdraft fees without the customer's' consent.
- Citibank was fined $70M for deceptive marketing practices and had to refund $700 million to the 9 million customers they duped with hidden fees.
Over the past seven years, the world's top 20 banks have paid a cumulative $235 billion in regulatory fines and consumer remuneration.
Earlier this year, executives of Wells Fargo confirmed they are making radical changes internally. One of those was to invest in technology.
What type isn't clarified. However, separate documentation shows that the bank is working in partnership with Australian Bank ANZ, which has published a Proof of Concept (PoC) paper for the use of distributed ledger technology in correspondent banking.
When money’s involved, historical cases in the finance sector prove that people cannot be trusted. The blockchain is trustless in that it’s tamperproof.
Overhauling the industry is a long way away. It’s far easier to make progress by introducing a new platform and forcing the industry to evolve or die - which is exactly what Etherecash is working on doing.
Using blockchain technology and the Ethereum platform, Etherecash is developing a blockchain application geared towards the peer-to-peer lending sector. This will bring transparent reporting with accurate records on a tamperproof ledger, increasing the speed of transactions and enabling the use of lawyer-backed smart contracts.
One transparent platform, focused on personal financial freedom, can bring accountability to the financial industry as a whole. We’re one step closer to ridding the industry of the malpractices that are tarnishing Wells Fargo and affecting the investments of many a shareholder in finance firms.
This is the beginning of a new era in technology. Moves are being made by big banks and technology firms to develop tools that will put an end to corporate financial fraud.
Etherecash is playing an active role on that front. We invite you to be part of this transformation. Early investor opportunities are available.
Purchase our Etherecash token through our ICO from November 15th 2017. Developed on the ERC20 blockchain technology with lawyer backed contracts, to make blockchain backed lending and fund management, private and seamless.
Buy our tokens now. Visit Etherecash.io.