WASHINGTON–It isn’t just credit unions expressing indignation at practices at Well Fargo that led to $185 million in fines.
Camden R. Fine, CEO of the Independent Community Bankers of America, also blasted the bank for its illegal sales practices.
“ICBA and the nation’s nearly 6,000 community banks are outraged that any financial institution would betray the trust of its customers by opening bank accounts without their knowledge,” said Fine in a statement. “According to state and federal allegations, Wells Fargo opened as many as two-million fraudulent deposit and credit card accounts, then fired roughly 2% of its 268,000 employees for engaging in the megabank’s improper and illegal sales practices.
“Not only is this conduct appalling and harmful to American consumers and communities, it also contributes to the growth of excessive regulation that needlessly burdens the local community banks that do right by their customers,” Fine continued. “While Wells Fargo has the luxury of throwing money at the problem to make it go away without its board or senior management being held accountable, the individuals and local institutions affected by its actions will continue to suffer for years to come.”
Fine went on to say that “This is yet another example of the industry inequality that plagues our nation’s banking system, favors the largest and riskiest financial institutions, puts taxpayers and everyday consumers at risk, and creates widespread market imbalance. Unfortunately for community banks and the millions of Americans harmed by Wells Fargo’s spurious conduct, this settlement is too little, too late.”