The outcry against the financial sector has taken yet another turn, this time with a petition calling on the Minneapolis School Board to move its payroll and other accounts from Wells Fargo to a local community bank as a way to highlight the connection between foreclosures and local school systems.
According to a recent report by the local Neighborhoods Organizing for Change, the student population declined significantly as a result of foreclosures in the Minneapolis area, costing the school district some $150 million.
The campaign, which has gained 8,000 signatures from people in all 50 states, was started by Steve Fletcher, a Minneapolis resident and executive director of the community-based organization. “We want our schools to put their money with institutions that support the community, not tear it down,” Fletcher said.
The group maintains that Wells Fargo is responsible for nearly 20% of the foreclosures in Minnesota's largest metro area. It also claims Wells made a disproportionate number of equity-stripping subprime loans to people of color in the region.
“The negative impact of these actions is now evident to people not just here in Minneapolis and not just in education but in all aspects of our lives across the country,” Fletcher said. “In just a few weeks, more than 8,000 people have signed this petition, and thousands more are sure to join.”
According to Fletcher, the campaign has gathered together community members to share their experiences during the foreclosure crisis, including one who purchased her home one block from Jordan Park Elementary in 2005. When the foreclosure crisis began in 2007, the owner said, “For sale signs started popping up on the houses and kids moved away as families lost their homes.”
Jordan Park Elementary was one of six schools closed due to under-enrollment.
According to Fletcher, the school board “was receptive” to the idea of switching banks but has yet to do so.
Wells is the nation's largest residential originator, with a market share that is twice that of the number two ranked JPMorgan Chase. Among servicers, it ranks second behind Bank of America.
