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“Legacy Banks vs. Crypto: Identifying the Villains in the World of Finance?”

The world of finance is no stranger to controversy and scandal, but recent headlines have cast a harsh light on the underside of the crypto realm. As stories of hacks and rug pulls grab the attention of the masses, it’s easy to overlook the misdeeds of more established financial players.

Here we take a close look at the corruption of legacy banks and compare them to the tribulations of the crypto industry. All too often, critics of crypto ignore equally serious failings at conventional institutions.

Bank of America, the largest of the bunch, has faced 214 fines, totaling a jaw-dropping $82.7 billion. Some notable instances include a $16.65 billion settlement in 2014 for misleading investors about the quality of mortgage-backed securities, and a $11.8 billion settlement in 2012 over abusive foreclosure practices. JPMorgan Chase, another American banking giant, has incurred 158 fines, amounting to $35.7 billion.

Shifting the Spotlight

The financial industry has experienced numerous cyber breaches and thefts in recent times, with cryptocurrencies frequently in the spotlight. However, a more in-depth investigation of the issue shows that traditional banks, such as Wells Fargo, also bear some responsibility.

It is worth noting that since 2020, Wells Fargo alone has accumulated an astounding $7 billion in fines, while the crypto industry has suffered losses of $6.45 billion due to hacks and rug pulls. One could argue that it is unfair to compare a single bank to the entire crypto industry. However, it is essential to recognize that Wells Fargo is a prime illustration of the legacy banking system’s flaws, and its misconduct is indicative of a more extensive pattern within the industry.

Meanwhile, other legacy banks like JPMorgan Chase, Citibank, Goldman Sachs, and Deutsche Bank have also faced steep fines. These banks, and others, were either convicted or settled on a series of charges. These include money laundering, wire fraud, and selling toxic securities to defraud investors.

Here we take a close look at the corruption of legacy banks and compare them to the tribulations of the crypto industry. All too often, critics of crypto ignore equally serious failings at conventional institutions.

The world of finance is no stranger to controversy and scandal, but recent headlines have cast a harsh light on the underside of the crypto realm. As stories of hacks and rug pulls grab the attention of the masses, it’s easy to overlook the misdeeds of more established financial players.

Malfeasance at Legacy Banks

The fines imposed on Wells Fargo cover a broad spectrum of issues, including whistleblower retaliation, discrimination, consumer protection breaches, fraud, and AML violations. This suggests that the problems within legacy financial institutions are deeply ingrained and not limited to the realm of cryptocurrencies.

For instance, in 2016, Wells Fargo faced a $185 million fine for opening over 1.5 million unauthorized bank accounts and issuing over 500,000 unauthorized credit cards. JPMorgan Chase, another leading bank, faced a $920 million penalty in 2020 for manipulating the precious metals and Treasury markets.

Here we take a close look at the corruption of legacy banks and compare them to the tribulations of the crypto industry. All too often, critics of crypto ignore equally serious failings at conventional institutions.

The world of finance is no stranger to controversy and scandal, but recent headlines have cast a harsh light on the underside of the crypto realm. As stories of hacks and rug pulls grab the attention of the masses, it’s easy to overlook the misdeeds of more established financial players.

A History of Illegality

While cryptocurrencies have come in for intense scrutiny, the world’s biggest banks have silently racked up staggering fines for their misconduct.

Bank of America, the largest of the bunch, has faced 214 fines, totaling a jaw-dropping $82.7 billion. Some notable instances include a $16.65 billion settlement in 2014 for misleading investors about the quality of mortgage-backed securities, and a $11.8 billion settlement in 2012 over abusive foreclosure practices. JPMorgan Chase, another American banking giant, has incurred 158 fines, amounting to $35.7 billion.

In 2020, the bank was slapped with a $920 million penalty for manipulating the precious metals and Treasury markets. Another fine of $13 billion came in 2013 for misleading investors during the housing crisis.

The world of finance is no stranger to controversy and scandal, but recent headlines have cast a harsh light on the underside of the crypto realm. As stories of hacks and rug pulls grab the attention of the masses, it’s easy to overlook the misdeeds of more established financial players.

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