UK Banks Fined $66 Billion For Insurance Fraud; Bitcoin Still Bad?

UK Banks Fined $66 Billion For Insurance Fraud; Bitcoin Still Bad?

The arguments as to why bitcoin is superior to the banking system are pretty clear cut to anyone that has used it. A decade ago BTC was conceived to cut out the fatcat middlemen and allow people to transact between themselves. We are not quite there yet, but flaws in the way banks work and grab their profits are mounting up.

Big Bank Fines Accumulating

Aside from the simple premise that bitcoin is faster and cheaper to send than an equivalent bank transfer, there are a number of other aspects in the crypto assets favor. Regulators, especially from the US, constantly harp on about money laundering and terrorist financing but they should really start looking closer to home than bashing bitcoin at every opportunity.

The worlds top banks have been fined in excess of $300 billion over the past decade for appalling and unprofessional behavior. That epic figure is more than the entire crypto market capitalization, yet still, regulators fret about a bit of bitcoin.

According to the figures, those fines are for a range of nefarious offenses including mortgage abuses, tax violations, insider trading, AML discrepancies, toxic securities, interest rate manipulation, and consumer protection violations.

According to Electric Capital co-founder, Avichal Garg, who documented the shocking findings, the UK fined banks $66 billion just this week.

The costliest scandal in UK financial history is coming to a head this week as the payment protection insurance debacle winds down. Banks and financial institutions aggressively sold this protection with the intention of covering missed debt repayments. But as Dominic Lindley, policy director at New City Agenda, a London-based financial services think tank, pointed out.

Someone within the banks must have known that not only was the product expensive, it was so ridiculously expensive that even if a customer made a full claim, it would barely cover the cost of the insurance,

In one instance the commission paid by the bank to its staff for the sale of PPI was 87% of the premium and profits were so large that firms were prepared to risk a fine for mis-selling.

Garg continued with his banking expose adding that earlier this year Barclays, Citigroup, J.P. Morgan, MUFG and Royal Bank of Scotland were fined $1.2 billion for rigging the spot foreign exchange market for 11 currencies.

Trust Bitcoin, Not Banks

The list goes on and the banks have clearly put profits above all else, including their clients funds. The trust in banks is clearly in decline and disruptive technology such as bitcoin could be the solution since it is trustless. Garg concluded;

Banks as organizations are dysfunctional. Instead of creating value first and monetizing later, they now exist only to make money through any means necessary. Thus few people trust banks,

Would you trust the banks more than the bitcoin network? Add your thoughts below.

Images via Shutterstock, Twitter: @avichal

The post UK Banks Fined $66 Billion For Insurance Fraud; Bitcoin Still Bad? appeared first on Bitcoinist.com.

12.09.2019 / 05:50 52
Bitcoin-Bashing Banking Cartels Fined 1 Billion For Currency Manipulation Bitcoin-Bashing Banking Cartels Fined
The European Commission has fined five banks, including the anti-Bitcoin JP Morgan, a total of over 1 billion for currency rigging. Traders clubbed
Big Banks Money Laundering: UBS Fined $4.2 Billion, Danske Shuts Down in 4 Countries Big Banks Money Laundering: UBS Fined
Money laundering scandals involving some of the worlds largest banks have grown this week. Switzerlands largest bank, UBS, has been fined 3.7 billion
Another Plus One For Crypto: Morgan Stanley Fined For Failing to Detect Money Laundering Another Plus One For Crypto: Morgan
Major banks are often spewing anti-crypto rhetoric over its potential to be used for money laundering. So it is a little ironic when one of the
Court Refuses to Drop Money Laundering Charge Against UBS, $5.8 Billion Fine Looms Court Refuses to Drop Money Laundering
A French court has reportedly rejected a request by the largest Swiss bank to drop money laundering charge against it. UBS Group and a number of its
Another Plus One For Crypto; Banking Giants Fined Billions for Malpractice Another Plus One For Crypto; Banking
For their misconducts, US and European regulators are imposing heavy fines on global banks. Solid research findings indicate that fines could top
Netherlands Largest Bank ING Group Fined $900M for Money Laundering Netherlands Largest Bank ING Group
This week Dutch authorities revealed to the public that the Netherlands largest financial services provider, ING, had violated numerous money
Comments (0)
Add a comment
Comment on