Committee for Better Banks Responds to Federal Regulators’ Actions Against Former Wells Fargo Executives
For Immediate Release: January 23, 2020
Media Contact: [email protected], 603-339-0042
NATIONWIDE — In response to fines and work restrictions brought against former Wells Fargo executives by the federal Office of the Comptroller of the Currency, Committee for Better Banks member Patrick Creaven, a five-year Wells Fargo Communications Associate from Concord, Calif., said:
“The civil action brought against former Wells Fargo executives for defrauding millions of consumers is a step toward accountability at the company, but these charges on their own will not bring justice for employees who were unfairly scapegoated, or change the corrupt system in place at Wells Fargo that fueled the disastrous sales scandal of 2016 in the first place.
“Let’s be clear: we are not seeing the change necessary to repair the harm done to workers, customers and investors. Frontline bank workers were the first to sound the alarm on the company’s widespread fraud, yet Wells Fargo continues to layoff thousands of these employees as part of a broader strategy to cut costs. Not only do these layoffs instill significant fear in Wells Fargo employees, they prevent customers from receiving the high-quality care and services that they deserve from their bank.
“We’re seeing momentum for further accountability build. State and federal legislators are taking action and introducing legislation to demand answers from Wells Fargo. If Wells Fargo wants to hear solutions that will actually restore trust in the company with investors and customers alike, CEO Charles Scharf must meet with frontline workers who are members of the Committee for Better Banks so you can hear our sincere independent perspectives and ideas for change without fear of retaliation or reprisal.”
Background on the Committee for Better Banks at Wells Fargo:
Wells Fargo employees with the Committee for Better Banks have been demanding a response from CEO Charles Scharf about the wave of layoffs and outsourcing impacting thousands of families nationwide. Despite making over $30 billion in profit in 2018 after $25.8 billion returned to shareholders through share buybacks and dividend increases, Wells Fargo announced last year that it would cut 26,000 positions.
In October 2019, the Department of Labor certified Trade Adjustment Assistance for laid-off workers at Wells Fargo’s Shoreview branch in Minnesota. Following the Shoreview layoffs in August 2019, Wells Fargo announced in October their decision to layoff over 350 workers from the bank’s Concord branch in California, including many highly-skilled customer service representatives. Concord workers have also filed for Trade Adjustment Assistance as the company continues to offshore thousands of frontline employees’ jobs.
In recent weeks, Representative Cindy Axne (D-IA) has introduced a bill in response to the mass layoffs of Wells Fargo workers in Iowa that took place in 2019, the Offshoring Notification Act. The bill would require employers to tell laid-off workers whether their jobs are being replaced overseas, and ultimately expedite the process for workers to receive financial support.
About the Committee for Better Banks:
The Committee for Better Banks, the only independent voice for frontline bank employees, is comprised of bank workers, community and consumer advocacy groups, and labor organizations, coming together to improve conditions in the banking industry. Committee for Better Banks members include current and former employees of banks and credit unions across the country, including Wells Fargo, Santander, Bank of The West, and Bank of America.