Wells Fargo loses Broward deal

Wells Fargo’s bad behavior in the past cost it some Broward County business in the present.

Broward commissioners approved Tuesday an agreement with Bank of New York Mellon Trust Co. to handle investment money from the county’s Housing Finance Authority.

Back in September, the agreement was supposed to go to Wells Fargo, but several commissioners raised a stink, questioning why the county would reward a company that created millions of fake accounts using customer information without their knowledge. The Housing Finance Authority has been looking for a firm to put about $11 million it has for future investments in a holding account.

The change of companies will cost the housing authority more.

The annual “safekeeping” fee to provide custodial service by Bank of New York will be $3,000, which is $1,944 more than the fee proposed by Wells Fargo, said Henry Sniezek, who oversees the authority.

“I believe that Wells Fargo has made certain missteps costing them the support of the public,” Commissioner Michael Udine said. “At the current time, Wells Fargo is not the best choice for the HFA and county and won’t be until it regains the trust of the public.”

Wells Fargo has said potentially 3.5 million accounts were opened between 2009 and 2016 without the permission of the customers named on those accounts. The company has said the accounts were created by employees trying to meet aggressive sales targets.

The county currently has a financial services contract with Wells Fargo that expires in June.

“I am hopeful that Wells can rebuild the trust of the community by then,” Udine

said.

Wells Fargo officials had been in touch with the county about handling the housing authority account after the commission’s concerns arose, said Gabriel Boehmer, a senior vice president and communications manager for Wells Fargo.

“We respect the county’s open and transparent process. Wells Fargo values our relationship with Broward County, and we will continue to serve the local community to the best of our ability,” Boehmer said.

In other action Tuesday, commissioners:

Tentatively approved changes to the county’s Human Rights Act that prohibits housing discrimination against veterans and domestic violence victims. A final vote is set for Dec. 5.

Rescinded a 1970 law that banned the sale of non-prescription syringes, which had been put in place to combat illegal drug use. Officials fear users sharing dirty needles could spread diseases such as HIV, AIDS and Hepatitis C. They’re also concerned the use of dirty needles could be exacerbated by the ongoing opioid epidemic.

Approved a resolution supporting a Florida Senate bill that would designate a stretch of highway in Alachua County as the Tom Petty Memorial Highway in honor of the late musician.