Lynch Leads Letter Calling for Massachusetts to End Business Dealings with Wells Fargo

Oct 17, 2016 Issues: Financial Services Committee

BOSTON, MA – Today, Congressman Stephen F. Lynch (D-Boston) and members of the Massachusetts Congressional delegation sent a letter to Massachusetts Treasurer Deborah Goldberg calling for the Commonwealth of Massachusetts to end any business arrangements with Wells Fargo.

Wells Fargo recently paid $190 million in penalties in response to their fraudulent business practices. Employees at Wells Fargo secretly created millions of fake deposit and credit card accounts in order to receive bonuses. While Massachusetts has more limited business dealings with Wells Fargo than other states, the revelations and former Wells Fargo CEO John Stumpf’s recent testimony before the House Financial Services Committee and the Senate Banking Committee raise serious questions about the company’s behavior and the risks it poses to local consumers.

The letter, signed by Congressman Lynch, Congressman Michael E. Capuano (MA-07), Congresswoman Katherine Clark (MA-05), and Congressman James P. McGovern (MA-02), highlighted the Commonwealth’s long history of protecting consumers and instilling trust in the financial services sector. The delegation noted that Wells Fargo’s unethical behavior is grounds for the Treasurer’s office to curtail all financial dealings with the company.

“Wells Fargo’s leadership has not been held accountable and the company has promoted a culture that led to widespread fraudulent activity with employees taking advantage of their own customers. We should not be investing taxpayer funds with a bank that has demonstrated such blatant disrespect for the privacy rights of its customers and widespread disregard for law. The Commonwealth has a proud history of advocating for everyday families and local businesses and under the leadership of Treasurer Goldberg, Massachusetts has continued to be a model across the country. We should not risk that reputation by continuing financial relationships with Wells Fargo,” said Congressman Lynch.

The text of the letter is available here.