3 SUGGESTIONS: AG INVESTIGATION, LINKED BANKING PROGRAM, AND SUPPORTING
Calabasas, CA, October 11, 2016— In response to a hearing held today in Calabasas by the California Assembly
Banking and Finance Committee, Paulina Gonzalez, executive director of the California Reinvestment Coalition,
a nonprofit, state-wide coalition released this statement:
“While we appreciate the transparency created by today’s hearing, now is the time to take concrete steps and
create accountability for not only this most recent fake account settlement, but also the many other settlements
(see fact sheet) Wells has entered into for practices that harmed California customers as well as their customers
across the U.S.”
Specifically, the California Reinvestment Coalitions recommends:
1) Attorney General Investigation: If she hasn’t already, Attorney General Kamala Harris should open an
investigation into the illegal practices that took place at Wells Fargo, and any efforts by the CEO, senior
leadership, or Wells Fargo board, to prevent employee whistleblowers from reporting these illegal activities
earlier. CRC has heard reports directly from nonprofits about being impacted by the fake accounts, and we urge the AG’s office to also investigate the extent to which these fake accounts may have harmed nonprofits, small
business owners, and/or government agencies.
2) Develop a State Linked Banking Program: The state of California has billions of dollars in deposits that it
holds with banks. California’s legislature should use “the power of the purse” and develop a state linked banking
ordinance requiring the state to only do business with financial institutions who are engaged in ethical corporate
behavior and reinvestment back into California communities.
3) CalSTRS and CalPERS Support Shareholder Resolutions: CalSTRS and CalPERS should both support
corporate governance measures at Wells Fargo via shareholder resolutions to split the CEO and Board Chair role
at the bank, and additional resolutions that address the bank’s business practices and causes of the scandal. The
Interfaith Center on Corporate Responsibility is sponsoring shareholder resolutions that focus on reviewing and
reporting on business standards; linking executive pay to ethical conduct; separating the Chair and CEO roles;
and greater disclosures on lobbying and political spending by Wells Fargo.
Additional Context: Wells Fargo Hasn’t Had a New CRA Rating in 8 Years
Last week, the California Reinvestment Coalition published an OpEd in American Banker (OCC Hasn’t Issued
Wells Fargo’s CRA Score in Eight Years) calling on the Office of the Comptroller of the Currency (OCC), a
federal bank regulator, to downgrade Wells Fargo’s Community Reinvestment Act rating and release it to the
The OCC conducted a CRA exam of Wells Fargo in 2012, but the results from that exam still haven’t been
released to the public.