Wells Fargo Mismanagement of Billions In Customer Funds Not Highlighted Like FTX

– Advertisement –

Brad Garlinghouse is not comfortable with the media coverage Wells Fargo’s asset mismanagement is getting compared to the FTX implosion.

Brad Garlinghouse, American businessman and Chief Executive of Ripple Labs, is outraged at how Wells Fargo’s recently-uncovered asset mismanagement is being reported and handled by U.S. financial authorities, compared to the magnitude of coverage the FTX collapse has attracted.

The Kansas-born businessperson took to Twitter to express dissatisfaction with the current happenings. According to Garlinghouse, the outrage triggered by the FTX collapse is appropriate and justified. However, he believes Wells Fargo’s loan and asset mismanagement case should be getting as much attention from mainstream media and financial authorities as FTX’s dilemma.

“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…,” Garlinghouse remarked in a tweet Wednesday. Reactions have trailed the Ripple Chief’s comments on the situation.

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’s Civil Violations 

Recall that Wells Fargo, America’s fourth-largest bank by total assets held and third-largest by market capitalization, was recently fined a total of $3.7 billion by the United States Consumer Financial Protection Bureau (CFPB) for what the agency labeled as an elaborate scheme of mortgage, loan and customer account mismanagement.

According to a CFPB media release on Tuesday, Wells Fargo’s fund and asset mismanagement subjected multiple customers within the bank to financial harm to the tune of billions of dollars. Thousands of customers are said to have also lost their homes and vehicles.

Wells Fargo imposed illegal fees on overdrafts for customers, unlawfully charged interest on loans, and enforced the repossession of consumer vehicles, CFPB claims. The bank is expected to pay $1.7B in civil penalty and an extra $2B as redress for over 16 million customers its contractual violations affected.

Despite the civil action against Wells Fargo, Garlinghouse believes more heat should be on the 170-year-old American banking giant. Some XRP proponents have also mentioned that the U.S. SEC should have focused on issues like this that directly affect consumers instead of coming for Ripple.

Garlinghouse’s disappointment is also triggered by the fact that Wells Fargo has repeatedly been in the spotlight for civil violations, with up to nine consent orders currently open against the bank from different financial authorities.

Recall Garlinghouse had taken a swipe at the SEC for not properly investigating FTX before its collapse.

– Advertisement –