Wells Fargo is now making unexpected account closures according to Attorneys General in 16 states, sources are reporting.
More than a dozen state attorneys general (AGs) are accusing banking titan Wells Fargo of abruptly terminating customers’ accounts without warning.
In a letter addressed to Wells Fargo CEO Charles Scharf, 16 Republican AGs across the country accuse the trillion-dollar lender of ‘debanking‘ customers in a political and discriminatory manner, reports The Daily Hodl.
The AGs say Wells Fargo has started a new trend that looks at clients’ political views as a basis for retaining banking access.
“Within this context, Wells Fargo’s decisions to debank Republican candidates and gun industry participants reveal a new troubling trend…
Blanket prohibitions and policies against providing service to certain customers lead to the inevitable question – who is next?
Which types of companies or people will Wells Fargo determine cannot be allowed as customers?
Is this why Wells Fargo apparently closed the accounts of former Republican candidates Lauren Witzke and Pete D’Abrosca on the same day in 2021?”
The AGs say the alleged pattern may be in violation of state laws.
“Wells Fargo should cease its efforts to discriminate based on ESG (environmental, social and corporate governance) objectives, and publicly commit to serving Americans in a fair, nondiscriminatory, and lawful manner.
States possess meaningful authority over banks under civil rights and unfair and deceptive acts and practices (UDAP) statutes.”
The 16 AGs end the letter asking Wells Fargo to stop its debanking policies and respond to its concerns by April 4th.
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Also Read: A US Bank is Now Denying Customers Access to Money
Other Economy News Today
Another bank now announces hundreds of unexpected layoffs in its retail operations as it transitions to online services.
Santander has cut about 320 of its U.S. roles in recent days, a person familiar with the matter told Bloomberg and Reuters.
Many of the layoffs are centered on the bank’s retail operations as Santander looks to give itself more of a digital focus, in line with a strategy Chair Ana Botin emphasized around this time last year at the bank’s investor day.
“Now it’s time to accelerate towards building a digital bank with branches,” Botin wrote in an Instagram post in February 2023.
Santander aims to launch a fully digital platform in the U.S. this summer in its consumer and commercial units, according to Reuters.
“We are evolving our US business, investing in digital capabilities and simplified processes to adapt to changing customer needs,” Santander said in a statement seen Sunday by Bloomberg and Reuters.
“These steps have resulted in an update to our staffing model that impacts a small percentage of our branch colleagues.
We will continue to support them throughout this process and are working to provide internal opportunities, where possible.”
The layoffs account for between 2.4% and 2.7% of Santander’s U.S.-based workforce, according to varying figures reported by the wire services.
The move comes at a time when Santander seeks to double its investment banking business in the U.S.
To that end, the bank has aimed to hire 150 employees to build out its investment banking operations in the U.S., Reuters reported in July.
Santander hired more than 100 bankers in 2023 through October, according to the Financial Times, with most of those roles in the U.S. and more than half filled by Credit Suisse alums, reports BankingDive.
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Also Read: A Massive US Bank is Now Closing Credit Cards
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