News/Opinion by Ron Mortensen 9-30-16

Wells Fargo bank is under fire for abusing its customers’ trust and defrauding them of millions of dollars by fraudulently setting up millions of bank accounts and credit cards in their names.

During a September 29, 2016 hearing of the United States House of Representatives Committee on Finance Services (also referred to as the House Banking Committee), members of Congress expressed outrage at Wells Fargo’s business practices.  Although this committee oversees banking, committee members were apparently shocked to learn of Wells Fargo’s behavior even though the fraudulent activities had been going on for years.

On the same day, it was reported by the media that Wells Fargo had been sanctioned by the Justice Department for improperly repossessing 413 cars owned by members of the military in violation of the Servicemembers Civil Relief Act.

Utah’s 4th District Congresswoman, Mia Love, is a member of the Financial Services committee and in a call to the Doug Wright radio program during the committee hearing she expressed her disgust with Wells Fargo’s business practices.  She also called for the resignation or firing of Wells Fargo CEO, John Strumpf, for criminal penalties and for restitution for those harmed by Wells Fargo.

She later followed up with this statement:  “Wells Fargo has betrayed its customers, and I eagerly anticipate the results of the House Financial Services Committee’s in-depth investigation into the bank’s practices.   Today’s hearing is just the beginning of the process, which includes gathering thousands of pages of records and documents from Wells Fargo and relevant regulators.   What we’ve heard so far is an example of fraud, theft, and a betrayal of trust.  It’s also an example of a failure of government regulators, who were supposed to be in place to catch this kind of activity.  At the very least, Wells Fargo CEO John Stumpf is accountable for this betrayal of trust, and he should resign.”

However, according to federal campaign finance records, Love has accepted $7,000 from the Wells Fargo and Company Employee PAC along with tens of thousands of dollars from the American Bankers Association PAC, Bank of America, Capital One, Citigroup, Credit Suisse, Morgan Stanley, Mortgage Bankers Association, UBS and Zions bank,  She has also accepted contributions from individuals associated with banks including A. Scott Anderson ($8,100) and Harris Simmons ($2,700) of Zions Bank.

Acceptance of these campaign contributions raises at least two questions.  First, as a member of the banking committee, why did Love accept contributions from the very banks and other institutions that the committee oversees since at a minimum this creates the perception of impropriety?  Second, now that Love is aware of Wells Fargo’s actions and the harm that it has done to its clients, including veterans, will she return the campaign contributions she has received from Wells Fargo?

In accordance with guidance from Love’s Washington office, an e-mail was sent to her Communications Director inquiring if the Wells Fargo campaign contributions would be returned.  No response has been received.

A review of Love’s challenger’s (Doug Owens) contributions shows that as of June 30, 2016, he had received significant support from both public and private sector labor unions.  Owens also received $2,500 from Zions Bank.  Of the total $1,446,528 received by Owns all but $250,000 (17.3%) had come from individual donors compared with Love’s total of $3,064,579 with all but $696,255 (21%) received from individual contributions.