California City Thinking Of Closing Wells Fargo Account Over Foreclosure Debacle

It’s not just individuals and small businesses that are peeved about the way big banks have mishandled the massive amount of foreclosures during the last half-decade. The city government of Berkeley, CA, is looking to pull several hundred million dollars out of its Wells Fargo accounts and plunk the pile down at a more consumer-friendly financial institution.

The Oakland Tribune reports that earlier this week, the Berkeley City Council voted unanimously to look into withdrawing its $350 from the Wells Fargo wagon and finding “responsible financial institutions” upon which to bestow the bundle.

“Wells Fargo Bank … was a key part of the subprime lending crisis which led to our overall economic collapse,” reads a statement from two Council members.

Berkeley’s Mayor even admitted that he recently moved his own money out of WF and to a “community bank.”

He did note that the bank has also loaned quite a bit of money to local businesses and that it has donated millions to charities in the area.

The city’s contract with Wells Fargo ends at the end of the year. The city manager will file a report in May on whether or not to continue that 8-year relationship or to look elsewhere.

Berkeley considers closing its multimillion dollar Wells Fargo account over bank’s handling of foreclosure crisis [Oakland Tribune]

Thanks to Brian for the tip!