A Bank Gets One Right

The city of Seattle, WA, is upset with Wells Fargo because the bank is a lender to the Dakota Access Pipeline project.  They’re so upset, in fact, that they’ve advised Wells that Seattle won’t renew its financial services contract with the bank when it expires at the end of next year.

Phillip Smith, Executive Vice President and Head of Government and Institutional Banking at Wells Fargo, isn’t worried, though.  He responded to the city via letter, saying that

if the city really wants out, the bank will sever its contract with the city immediately, with no penalty, and will help the city find a replacement[.]

I agree with Wells.  Seattle shouldn’t let the door hit it in the fanny on the way out.

The outcome likely will be more expensive for Seattle, though: Wells won the financing contract (nearly 20 years ago; what won’t be renewed is the latest 6-yr installment) by competitive bid.  That means any replacement bank probably will cost the city, which is to say the good residents of the city, more.

Leave a Reply

Your email address will not be published. Required fields are marked *