Bank transaction on hold

Officials spooked by Wells Fargo’s fake accounts

Broward County commissioners are having second thoughts about doing business with Wells Fargo because of revelations the bank created millions of fake accounts by using information without their knowledge.

The Broward Housing Finance Authority had planned to place its investment dollars into a holding account with Wells Fargo, but the bank’s recent controversies had commissioners questioning that move Thursday.

The authority was looking to deposit about $11 million into the account, proceeds from its bond transactions, said Henry Sniezek, who oversees the au- thority.

Commissioner Michael Udine said he didn’t like the idea of the bank being a “safe-keeper of our securities in light of what we’re seeing throughout the country.”

Commissioner Chip LaMarca took it a step farther, saying he wants the county to re-examine all of its financial dealings with Wells Fargo.

“I can give you 3.5 million reasons why we shouldn’t be using Wells Fargo — fake accustomer counts,” LaMarca said.

“I don’t find them to be a reputable organization. I find what they’ve done to the public is reprehensible,” LaMarca said. “People had cars repossessed because they put additional insurance on accounts that they didn’t sign up for. People had homes repossessed because they reneged on financial arrangements.”

Wells Fargo has said about 3.5

million accounts were opened between 2009 and 2016 without the permission of the customers named on those accounts. The company has said the accounts were created by employees trying to meet aggressive sales targets.

Thursday’s item was considered a routine one on the commission’s agenda, but caught Udine’s attention because of the scandal, which first broke last year.

Gabriel Boehmer, a senior vice president and communications manager for Wells Fargo, said the bank values its 20-year relationship with the county.

“We understand the commissioners’ concerns and are working hard to rebuild trust with all our customers and to build a better bank,” said Boehmer, contacted after the meeting. Last year, Wells Fargo made $57 million in community development loans in the county and its foundation contributed more than $1.2 million to county nonprofits, he said. The bank also allows the public to pay county tax bills at no charge at its 74 Broward branches.

The county currently has a financial services contract with Wells Fargo that expires in June 2018. The Housing Finance Authority was looking to use that contract to obtain better fees for investment money it currently has with U.S. Bank. The item was withdrawn to give officials time to see what other options the housing authority has and what would be the difference in cost if it doesn’t use Wells Fargo.

Commissioner Mark Bogen was also in favor of going with another bank, saying there were plenty of custodial banks “that would love to have our money tomorrow.”