Santa Cruz County bans Wells Fargo for a year

UPDATE 10/11/16: On Tuesday, the Santa Cruz County Board of Supervisors passed a proposal to adjust its business policy, placing a hold on doing any business with Wells Fargo for a year.

Last month, Wells Fargo Bank admitted thousands of bank employees created over two million fraudulent customer accounts.

Supervisor Ryan Coonerty put the item on the agenda, stating the county shouldn’t be doing business “with financial institutions that fleece their customers and demonstrate a total lack of integrity.”

Wells Fargo issued this statement:

“Wells Fargo is disappointed that Santa Cruz County is reconsidering its investments with the bank in the short-term. We have worked diligently and professionally with the county to support its government and people. Our highly experienced and proven securities team stands ready to continue delivering outstanding service to the county.

“We certainly understand the concerns that have been raised. We are very sorry and take full responsibility for the incidents in our retail bank, which is separate from Wells Fargo Securities, which provides the city access to the U.S. capital markets. We have already taken important steps, and will continue to do so, to address these issues and rebuild our county leaders’ trust.”

“Wells Fargo has been part of Santa Cruz County since the 1800s. We will continue to serve our local customers and be the same committed community partner in Santa Cruz County, where we have donated $1.15 million since 2011 to community organizations such as Second Harvest Food Bank and invested $3.5 million in affordable housing. Last year, our more than 170 local team members volunteered more than 930 hours serving their communities.”PREVIOUS STORY: A Santa Cruz County supervisor is recommending the county hold off on new business with Wells Fargo Bank for at least twelve months in light of the company’s recent fraud scandal.

Supervisor Ryan Coonerty plans to present the issue at the Board of Supervisors meeting on October 11.

In a letter to his colleagues, Coonerty states the county shouldn’t be doing business “with financial institutions that fleece their customers and demonstrate a total lack of integrity.”

Last month, Wells Fargo Bank admitted thousands of bank employees created over two million fraudulent customer accounts.

KION has reached out to Wells Fargo for comment. A media representative said they are working on a statement.