By City Hall Bureau Chief Mike Dunn
PHILADELPHIA (CBS) – A city councilman thinks the city should yank hundreds of millions of dollars in deposits from Well Fargo, unless bank officials come in and explain their role in deals that cost the city and school district millions.
Councilman at large Jim Kenney believes Wells Fargo was among several banks that profited from deals called “interest rate swaps;” deals that went south for many municipalities, including both Philadelphia’s government and the School District.
“With the hundreds of millions of dollars in lost swap money we entered into with banks like Wells Fargo, none of those banks ever were called to account for any of those actions that they did over the course of those years,” says Kenney.
So he introduced a bill that would require the city to withdraw its deposits with Wells Fargo.
He wants them to appear at a hearing to explain why they deserve the city’s business.
“We have a quarter billion dollars sitting in Wells Fargo alone. And I think they need to come in and explain why we need to do business with them in the future. I don’t think it should be a fait accompli,” Kenney says.
Donn Scott, regional Vice President for Wells Fargo, told us he would not comment on the Kenney legislation.