Wells Fargo, trying to invest more in black-owned banks, has put capital investments in six of them so far, according to a press release on Monday (February 8).
The plan, launched in March 2020, was to place up to $ 50 million in banks owned by blacks, who would then have access to financial and technological assistance and product development.
The initiative will help “grow and benefit the local community. In the ongoing pandemic, communities of color have been disproportionately impacted and this investment is part of Wells Fargo’s effort to generate a more inclusive recovery across the country, ”says the statement.
The banks affected this time are Broadway Federal Bank, in Los Angeles, California; Carver Federal Savings Bank, New York, New York; Citizens Savings Bank & Trust, in Nashville, Tennessee; Commonwealth National Bank, in Mobile, Alabama; M&F Bank, in Durham, North Carolina; and Optus Bank, in Columbia, South Carolina.
Kleber Santos, head of Wells Fargo’s Miscellaneous Segments, Representation and Inclusion Division, said the pandemic only emphasized existing racial inequalities and divisions.
“February is Black History Month and we are proud to announce these investments at this time because they reflect our dedication to helping African American communities, many of whom continue to struggle with the destructive economic impact of the pandemic,” he said, according with the launch. “Wells Fargo wants to help drive stabilization and recovery using our financial resources and our ability to act as a partner to deliver better results.”
Wells Fargo recently reported that its provision for credit losses fell by $ 823 million, which the bank said was the result of a $ 757 million reserve release due to the sale of its student loan portfolio and net write-offs. . CEO Charlie Scharf said credit “continues to perform well, as both consumers and businesses have benefited from accommodation, the continued fiscal and monetary stimulus [an] improving economic prospects. “
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