What’s up with NYC pols and Wells Fargo?

In a letter to Wells Fargo, the New York City government said it won’t open new Wells Fargo depository accounts. It follows accusations that the bank discriminates against Black homeowners.

Why should we care?
Wells Fargo may attempt to use its latest fintech partnership to rebrand itself as a champion of equitable homeownership. New York City Mayor Eric Adams, along with the city’s comptroller, said in their letter that Wells Fargo needed to swiftly address its discriminatory discrepancies to undo the government’s account freeze; the bank rejected the majority of Black applicants looking to refinance their homes in 2020, while approving 71% of white applicants looking to do the same. But Adams was also front and center in late March at Wells Fargo’s launch party with Bilt, the fintech building a rewards program and credit card for aspiring homeowners. (Adams’s administration also proceeded to clear out dozens of homeless encampments the same night as this party for housing accessibility.) With Adams’s presence a de facto stamp of approval, Wells Fargo might double down on partnerships to prove that it’s working on a more equitable set of products. This also carries the risk that Wells Fargo will only focus on these new products without addressing the discriminatory failures in its existing suite of services. We should keep these political pressures in mind as we eye Wells Fargo’s new partnership announcements in the coming months.