The 10 most shameful bank scandals of 2013

December 27, 2013 by My Bank Tracker

This year brought a whirlwind of shocking announcements and news that would go on to affect every corner of the globe, including the number of banking scandals uncovered in some of the world’s largest countries, including the U.S.

10. Banks breaking into homes

Independent contractors (typically low-paid workers without training) working indirectly for banks were given permission to enter “abandoned” properties to do maintenance and simple repairs. However, many of these contractors entered homes that were still occupied by owners, and took it upon themselves to allegedly change locks and steal valuables inside.

9. Wells Fargo and Bank of America sued for $2.15 million

FINRA, The Financial Industrial Regulatory Authority, the biggest independent securities regulatory company, fined the brokerage divisions of Wells Fargo and Bank of America for $2.15 million based on allegations that the bank sold floating-rate bank loan funds that harmed the risk options of its clients.

8. Wells Fargo paid National Fair Housing Alliance $42 million

Wells Fargo agreed to settle on allegations that it purposely neglected maintaining and marketing foreclosed homes in black and Latino neighborhoods, nationwide, for $42 million.

7. TD Bank paid $52.5 million settlement tied to Ponzi scheme

The Securities and Exchange Commission and the Office of the Comptroller of the Currency were awarded $52.5 million in a settlement by TD Bank to resolve allegations that it failed to act on suspicious activity in accounts tied to a $1.2 billion Ponzi scheme, as well as lied about the accounts in talks with investors.

6. HSBC forked over $2.5 billion in damages on fraud case

Household International, a mortgage and credit card company, made false statements about their business to mislead investors and inflate its stock price artificially. The company also used predatory lending practices to increase sales. HSBC, which absorbed the company in 2002, has agreed to pay $2.5 billion in damages to thousands of former shareholders in Household International.

5. Ten major banks paid for foreclosure abuse

JPMorgan Chase, Bank of America, and Wells Fargo, among other major banks, agreed to pay $8.5 billion for wrongfully foreclosing on homeowners that had the right to stay in their homes.