Berkeley mulls pulling account out of Wells Fargo

AP News
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Posted: Feb 06, 2012 2:50 PM
Berkeley mulls pulling account out of Wells Fargo

Berkeley is considering taking its $350 million account out of Wells Fargo, saying the bank is partly to blame for the nation's financial crisis.

The council voted last week to study other options, including entrusting the money to "responsible financial institutions" such as a community bank or credit union.

Berkeley's contract with San Francisco-based Wells Fargo expires at the end of this year. Following last Tuesday's vote, the city manager will present a report in May on the feasibility of ending the contract.

Mayor Tom Bates cautioned during the meeting that Wells Fargo loans a lot of money to Berkeley nonprofits and gives to local charities.

Wells Fargo spokesman Ruben Pulido noted that while the bank did accept a $25 billion federal bailout in 2008, it repaid it with interest by the next year.