City was right to move its money out of Wells Fargo

You might say the people have spoken and their voices are being heard loud and clear. The city of New Haven has moved three of its accounts out of Wells Fargo Bank and also is putting out a request for proposals to move its two large operational accounts to other financial institutions.

The move comes after New Haveners pressured the city to put its money with a more ethically responsible bank — and with good reason.

For the past four years, protesters here and nationwide have railed against Wells Fargo for its investment in the 1,200-mile Dakota Access Pipeline, which is under construction in North Dakota near the Standing Rock Reservation.

The Standing Rock Sioux tribe has opposed the pipeline, which is designed to transport as many as 570,000 barrels of crude oil daily from North Dakota to Illinois. But the pipeline would travel underneath the Missouri River, which is the primary drinking water source for the tribe of around 10,000.

The tribe cites concerns that any spill would contaminate their water supply and also are troubled the pipeline is being built over sacred ground.

Many people here and nationwide agreed with the Native Americans and some New Haven residents even trekked to North Dakota to stand in solidarity with the Sioux tribe and others.

The controversy — which pits the tribe and social activists against local and state government — has led to allegations of police using pepper spray, rubber bullets and concussion cannons to disrupt the protest and thwart the protesters, according to the tribe.

But it was a report by the state Office of the Comptroller of the Currency and disturbing allegations that actions taken by the bank directly affected the residents of New Haven that led city officials to spring into action.

The OCC found that Wells Fargo had an “extensive and pervasive pattern” of discriminatory and illegal lending practices for years — and the bank’s actions reflect “an extensive and pervasive pattern and practice of violations across multiple lines of business within the bank, resulting in significant harm to large numbers of consumers.”

The OCC specifically listed “treatment of minority neighborhoods, military personnel and women who had recently given birth,” Bloomberg reported.

In a city where the majority of people are minorities and many of its leaders are minorities and women, this is unacceptable. That veterans were targeted is unconscionable.

The OCC downgraded Wells Fargo’s rating under the Community Reinvestment Act to “needs to improve,” and the bank has now been deemed a “non-qualified public depository.”

Under a Connecticut statute, that means no more public funds can be deposited at Wells Fargo.

We think that is a good thing and the right thing to do. Activist Geremy Schulick points out that Wells Fargo is not alone in investment and Chase, TD Bank and Bank of America also put millions into the pipeline project.

We will not argue whether Wells Fargo or any other bank is right or wrong to invest its money in the pipeline; after all, banks are solely in the business of making money, not engaging in social activism.

But we will argue that if any bank has a pattern of discriminatory and illegal lending practices that affects minorities, military personnel and women, then that bank has no right to the money that minorities, military personnel and women produce.

The city was right to move its money out of Wells Fargo — and other banks should take notice.