Berkeley Mulls Pulling $350 Million Account Out of Wells Fargo

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Updated: 3:52 PM Feb 6, 2012 Berkeley Mulls Pulling $350 Million Account Out of Wells Fargo Berkeley is considering taking its $350 million account out of Wells Fargo, saying the bank is partly to blame for the nation's financial crisis. Posted: 11:27 AM Feb 6, 2012 Reporter: Associated Press Email Address: news@kolotv.com

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BERKELEY, Calif. (AP) - Berkeley is considering taking its $350 million account out of Wells Fargo, saying the bank is partly to blame for the nation's financial crisis.

The council voted last week to study other options, including entrusting the money to "responsible financial institutions" such as a community bank or credit union.

Berkeley's contract with San Francisco-based Wells Fargo expires at the end of this year. Following last Tuesday's vote, the city manager will present a report in May on the feasibility of ending the contract.

Mayor Tom Bates cautioned during the meeting that Wells Fargo loans a lot of money to Berkeley nonprofits and gives to local charities.

Wells Fargo spokesman Ruben Pulido noted that while the bank did
accept a $25 billion federal bailout in 2008, it repaid it with interest by the next year.

Latest Comments

Posted by: Anonymous on Feb 8, 2012 at 10:13 AM

Banks always succumb to the 80/20 rule. 20% or your customers provide 80% of your profit. WF before it's take over by that eastern bank, was the only bank that really profess to have a class of customers called "expectant". The expected them to leave and the bank would be better off after they left. It was a touch of reality.

Posted by: Mom Location: Reno on Feb 6, 2012 at 10:10 PM

@wayne true they had to take it, but they could have used it better to help homeowners in Nevada. They paid it back quickly. @7 also true IRS did put a stop to that but in this economy maybe a little less than a few billuon in profits might make customers stay if it wasn't all the added fees being assessed on the low and middle class folks that don't have enough money for a PMA relationship. You should be treating them better!

Posted by: Wayne Location: Reno on Feb 6, 2012 at 03:54 PM

I am surprised that the People’s Republic of Berkeley would object to government involvement in anything, especially big banks. I would recommend they transfer their account to a bank in Cuba so they will feel more at home. This would work out fine as long as they do not try to make a withdrawal. Guess they did not hear that banks were forced to take government money even if they did not need it.

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