The Independent Community Bankers of America (ICBA) began the week taking on the federal credit union regulator. It ended the week publicly opposing one of the nation’s biggest banks.
In a statement released Friday afternoon, ICBA President and CEO Camden R. Fine took issue with Wells Fargo and the practices for which it was penalized $185 million Thursday by regulators.
“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,” Fine said. “According to state and federal allegations, Wells Fargo opened as many as 2 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.
“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.
“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.”