Independent Community Bankers of America CEO Camden R. Fine ripped Wells Fargo and regulators for what she views as a slap on the wrist penalty that let top management off the hook and tarnished the reputation of the industry.
“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. According to state and federal allegations, Wells Fargo opened as many as two million fraudulent deposit and credit card accounts, then fired roughly 2 percent of its 268,000 employees for engaging in the megabank’s improper and illegal sales practices.”
Fine continued, “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. 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.”
She concluded, “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.”
The organization lists Delaware-based Artisans’ Bank and WSFS in its directory of independent institutions. WSFS has been growing through the acquisition of smaller institutions facing heavy regulatory expenses.
The Wells Fargo settlement wasn’t the first instance of unauthorized sign-ups. Earlier, regulators fined Santander Bank $10 million for signing up customers for overdraft protection without their consent.
