Friday, 16 September 2016

Wells Fargo Scandal Is Just The Beginning; Here's What Else They're Hiding...

Banking is a black box. There is very little transparency, especially with extremely large banks.

Wells Fargo’s annual report, for example, shows roughly $300 billion in “commercial and industrial loans”.

That’s it. That’s all the detail we get. (It’s not just Wells Fargo, by the way. Every mega-bank maintains the same lack of transparency.)

We have no idea if they took depositor’s funds and floated a billion dollar loan to a failing business that’s about to go under.

Or if they have been making no-money-down loans to people with terrible credit.
No one knows anything about the inner workings of such an enormous bank… until it all hits the fan like it did in 2008.

And how could anyone know? When something becomes that big, that complex, with hundreds of thousands of employees and thousands of branches, it’s impossible to keep track of it all.

The latest banking scandal at Wells Fargo proves this point handily.

The people at the top clearly don’t have the foggiest idea of what’s going on.

And if they don’t know that thousands of their employees are opening up millions of phony customer accounts, how can they really be sure that your money is safe, and not being dumped into a new class of toxic investments?

Even worse, presuming the bank’s senior executives DID know what was going on, it means they were complicit in deceiving their customers.

Either way, it’s a shining example of how much deceit and incompetence there is inside the banking system.

We’re expected to simply hand over our funds to a black box that says, “Trust me, I’ll take good care of your money.”

Yet they never seem to miss an opportunity to prove that they are untrustworthy and make pitiful decisions with our savings.

[Posted at the SpookyWeather blog, September 16th, 2016.]

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