Wells Fargo

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Wells Fargo is a global bank network based in California. They operate all across the world. Wells Fargo is the 4th largest bank in the United States. The bank was established in New York City in March of 1852. The founders of the bank system were Henry Wells and William Fargo, who had already made American Express.

Like many U.S. companies, the bank has a history of racism in its past.[1][2] In 2008, Wells Fargo bought Wachovia, another bank, and took over its business.[3] Wachovia also had a history of slavery and discrimination.[1]

Wells Fargo has been sued for discriminating in the loans it offers customers, like Bank of America and other global bank networks.[2] On February 2, 2018, the US Federal Reserve Bank barred Wells Fargo from growing its nearly US$2 trillion-asset base any further, until Wells Fargo fixes its internal problems to the satisfaction of the Federal Reserve.[4]

In April 2018, The Wall Street Journal reported that the US Department of Labor had launched a probe into whether Wells Fargo was pushing its customers into more expensive retirement plans and into retirement funds managed by Wells Fargo itself.[5][6] In May 2018, The Wall Street Journal reported that Wells Fargo's business banking group had improperly altered documents about business clients in 2017 and early 2018.[7]

References[change | change source]

  1. 1.0 1.1 Benner, Katie (2005-06-02). "Wachovia apologizes for ties to slavery". CNN/Money. Retrieved 2020-11-08. Historians at the History Factory, a research firm specializing in corporate archival work, found that the Georgia Railroad and Banking Company and the Bank of Charleston -- institutions that ultimately became part of Wachovia through acquisitions -- owned slaves, Wachovia said in the statement. Records revealed that the Georgia Railroad and Banking Company owned at least 162 slaves, Wachovia said, and that the Bank of Charleston accepted at least 529 slaves as collateral on mortgaged properties or loans. The Bank of Charleston also acquired an undetermined number of people when customers defaulted on their loans.
  2. 2.0 2.1 Ingram, David; Rothacker, Rick (2012-07-12). "Wells Fargo to pay $175 million in race discrimination probe". Reuters. Retrieved 2020-11-08.
  3. "Wells Fargo to Buy Wachovia in $15.1 Billion Deal". DealBook. The New York Times. 2008-10-03. Retrieved 2020-11-08.
  4. Emily Flitter, Binyamin Appelbaum, and Stacy Cowley (February 2, 2018). "Federal Reserve Shackles Wells Fargo After Fraud Scandal". The New York Times. Retrieved February 3, 2018.CS1 maint: multiple names: authors list (link)
  5. Gretchen Morgenson and Emily Glazer (April 26, 2018). "Wells Fargo's 401(k) Practices Probed by Labor Department". The Wall Street Journal. Retrieved April 26, 2018. Department is examining if bank pushed participants in low-cost 401(k) plans into more expensive IRAs
  6. Kate Rooney (April 26, 2018). "Labor Department is reportedly investigating Wells Fargo's 401(k) unit". CNBC. Retrieved April 26, 2018.
  7. Matt Egan (May 17, 2018). "Wells Fargo altered documents about business clients". CNN. Retrieved May 17, 2018.