Broad coalition kicks off national campaign to hold banks accountable for foreclosures, recession
Submitted by Contra Costa Inteface
The people say: “Stop foreclosures now,” during a march against the Wells Fargo Bank foreclosures. (PHOTO COURTESY BY MAX KOO AND DAVE GOLDEN)
SAN FRANCISCO — Hundreds of people marched through San Francisco’s Financial District today to demand that Wells Fargo change corporate policies that bankrupt families, dismantle neighborhoods, and empty public coffers.
During the bank’s annual shareholder meeting, a delegation of homeowners and clergy addressed Wells Fargo CEO John Stumpf to demand an immediate foreclosure moratorium. Unlike other national banks, Wells Fargo has not changed its foreclosure procedures despite numerous confirmed reports of “robo-signing” and other illegalities in the foreclosure process.
“Today is very personal for my family. Since 2005, I have been fighting Wells for wrongful foreclosure,” said San Leandro resident Donna Vieira. “But through this process, I have learned that I am not alone. A quarter of foreclosures in this country happen right here in California and 700,000 families are in foreclosure right now. We need these banks to have a new bottom line that includes investing in our communities.”
Vieira has spent the last several years organizing with leaders from CCISCO: Contra Costa Interfaith and ACCE: Alliance of Californians for Community Empowerment, two of the organizers of the protest.
According to the U.S. Departments of Treasury and Housing and Urban Development, at the end of 2009, there were 350,169 Wells Fargo homeowners eligible for the Home Affordable Modification Program (HAMP). As of Feb 2011, only 77,402 homeowners received permanent modifications. This is a mere 22 percent rate of modification, more than 2 years into the program (www.makinghomeaffordable.gov). Meanwhile, Wells Fargo received nearly $43.7 billion in federal bailout funds, according to a widely cited study by Nomi Prins of Demos, a nonpartisan think tank. Furthermore, Wells Fargo reported to the Securities and Exchange Commission in 2010 that it paid CEO John Stumpf more than $17 million, including a $14 million bonus.
The shareholder actions are part of The New Bottom Line campaign fueled by a coalition of community organizations, congregations, labor unions, and individuals working together to build a movement that challenges established big bank interests on behalf of struggling and middle-class communities. Together, we work to restructure Wall Street to help American families build wealth, close the country’s growing income inequality gap and advance a vision for how our economy can better serve the many rather than the few.
The New Bottom Line campaign includes National People’s Action (NPA), PICO National Network, Alliance for a Just Society, Alliance of Californians for Community Empowerment (ACCE), and Industrial Areas Foundation of the Southeast (IAF-SE) and dozens of state and local organizations from around the country.
Foreclosures
At the end of 2009, there were 350,169 Wells Fargo homeowners who were eligible for HAMP. As of Feb 2011, only 77,402 got permanent modifications, a 22 percent rate of modification more than two years into the program. Wells Fargo has canceled 118,697 trial modifications and denied 175,336 homeowners from accessing HAMP. Unlike other national banks, Wells Fargo has not changed its foreclosure procedures despite numerous confirmed reports of “robosigning” and other illegalities in the foreclosure process.
Tax Evasion
Over the last ten years, Wells Fargo paid the lowest worldwide tax rate of the top five big banks (24.8 percent $27.5 billion on $110.9 billion pre tax earnings) and reportedly did not pay any federal taxes in 2009.
