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I previously worked in the mortgage banking industry, where I saw firsthand how corrupt and dishonest many banks can be. When the mortgage meltdown unfolded, I followed it closely. Since then, I’ve tried to stay current on the latest banking scandals. Most recently, the Wells Fargo debacle caught my attention.
To settle a class-action lawsuit, Wells Fargo & Co. agreed to boost its payout for unauthorized accounts to $142 million. It’s staggering to think that banks can absorb such massive penalties and still remain solvent. Meanwhile, in 2016, John Stumpf, the former Chairman of the Board, made over $21 million. It makes me wonder—how much do they pay the tellers?
And let’s not forget the other Wells Fargo debacle. Do you remember it? A Malibu home was foreclosed, the former owners evicted, and a Wells Fargo bigwig was using it for her entertainment, throwing lavish parties. Local Realtors claimed the bank refused to allow showings during that time. If you missed it, you can read more about it here.
But don’t be fooled. Dodd-Frank didn’t stop the corruption. Have you noticed the so-called dismantling of larger banks? They claimed it would eliminate the “too big to fail” problem. Yet today, the banks seem just as big, powerful, and greedy as ever.
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