Wednesday, February 1, 2017

Wells Fargo

NOTE: It is unclear from the news account below whether the action reported is "divestment" in the usual sense of removal from the endowment and/or pension portfolios or whether the contracts that are being discontinued are various financial arrangements used for ongoing operations.

UC to divest from Wells Fargo after Afrikan Black Coalition advocacy

By RevatiI Thatte | 1-31-17 | Daily Californian

The University of California will terminate $475 million worth of contracts with Wells Fargo after repeated criticism from the Afrikan Black Coalition, or ABC, over its ties to private correctional facilities. ABC alleged in a press release that Wells Fargo finances CoreCivic, a company that owns private prisons and detention centers. Additionally, in 2012, Wells Fargo settled with the U.S. Department of Justice over allegations of discrimination against African-American and Hispanic borrowers. The university terminated a $25 million commercial paper contract with Wells Fargo in November 2016. According to the ABC press release, the university will end its $150 million interest reset contract by April 1. Two-thirds of the $300 million line of credit will be terminated by February, with the remaining $100 million to be terminated as soon as a replacement bank is found...

UC Office of the President spokesperson Ricardo Vasquez confirmed the university’s divestment from Wells Fargo in an email, stating that the university deemed it appropriate to sever ties in light of the bank’s alleged recent activities regarding unauthorized bank and credit card accounts...

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