The San Francisco-based bank Wells Fargo has agreed to a $110 million settlement in a lawsuit which alleged discriminatory hiring and lending practices.
According to the plaintiffs, Wells Fargo set up sham interviews with minority candidates so that it would look like it was hitting diversity outreach goals. There were also allegations that the bank approved fewer than half of Black homeowners' refinancing applications in 2020.
The lawsuits, including one filed by long-time Wells Fargo shareholder Amy Isenberg, were ultimately consolidated together in the federal court in San Francisco. Other plaintiffs included the City of Pontiac Reestablished General Employees Retirement System in Michigan and the City of Plantation Police Officers' Retirement Fund in Florida.
The case, which will be granted final approval on Monday, will create a $100 million borrower assistance fund to provide mortgage assistance for low-to-moderate income borrowers.
The judge in the case, Trina Thompson, called the settlement "restorative" and "historic," and said it will hopefully spur institutional change at Wells Fargo, according to court transcripts.
“This program at least provides an exceptional amount of hope for a lot of people who did not think the American dream would be available to them under these economic times," said Thompson in her ruling.
