The University of California terminated a $25 million contract with Wells Fargo in November and will terminate another $450 million of contracts over the next two months.
The University will end a $150 million contract with Wells Fargo by April and phase out its $300 million line of credit while looking for a new bank. However, the UC will retain $425 million in contracts because of the high cost of leaving the bank.
UC spokesperson Ricardo Vazquez said in an email that the UC decided to suspend its relationship with Wells Fargo alongside the state treasurer’s move last year. In September, the state treasury suspended its relationship and several investments with Wells Fargo after federal investigators revealed Wells Fargo employees had created about 2 million fake credit and bank accounts in customers’ names since 2011. The bank was fined $185 million for its offense.
The Afrikan Black Coalition, comprised of black student groups across the UC, has spoken out against some of the UC’s investments in the past and renewed its advocacy against the University’s relationship with the bank after the scandal.