Religious Investors Demand Greater Accountability from Wells Fargo

One particular set of investors in embattled Wells Fargo has real problems with the way they’ve been doing business. According to Newsmax, investors with various religious affiliations…including a group of nuns…have apparently had it with Wells Fargo and its notorious practices, and have filed a shareholder resolution that asks the banking giant to specifically address the “root causes” of the scandal that led to the opening of millions of fake customer accounts.

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In addition to the matter of explaining precisely why the scandal happened, the resolution further asks that the company provide an explanation of what new measures will be put in place to ensure nothing like this happens again.

The Sisters of St. Francis of Philadelphia have been down this road with Wells before. In 2014, the group…along with other religious organizations…filed a similar resolution in 2014, but withdrew it when the bank agreed it would provide more information on the matter of risk controls.

That, however, never happened, much to the chagrin of people like Sister Nora Nash, who serves as director of corporate social responsibility for the Sisters of St. Francis.

“They haven't done what we would have. Now it is biting them in the face,” said Nash.

Another group of religious shareholders, the Unitarian Universalist Association (UUA), has filed a resolution asking Wells to study how executive compensation might be formally linked to ethical conduct.

The treasurer of the UUA, Tim Brennan, says that while the bank does, indeed, have an existing code of conduct, the fake accounts scandal is proof that the code presently in use “had nothing to do with the way the business was conducted.”

The information contained here is for general information purposes only. The Financial Writer blog and Bob Yetman disclaim responsibility for any liability or loss incurred as a consequence of the use or application, either directly or indirectly, of any information presented herein. Nothing contained in this article, or any other article featured at this blog, should be construed as a solicitation or recommendation to engage in any financial transaction. You should seek the advice of a qualified professional before making any changes to your personal financial profile.

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