TMCnet News
Wells Fargo Invests in Six Black-Owned BanksWells Fargo (News - Alert) today announced equity investments in six African American Minority Depository Institutions (MDIs) as part of its March 10, 2020, pledge to invest up to $50 million in Black-owned banks. As part of the capital investment, the banks will have access to a dedicated Wells Fargo relationship team that will provide financial, technological, and product development expertise in order to help each institution grow and benefit their 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. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210208005287/en/ Wells Fargo is investing in six Black-owned banks. (Photo: Wells Fargo) "These investments are designed to help the banks become stronger and more impactful to the minority communities they serve, which leads to economic revitalization and job opportunities," said Bill Daley, vice chairman of Public Affairs at Wells Fargo. "So many communities have suffered over the past year. MDIs need capital, but they can also benefit from access to other resources, and Wells Fargo is committed to building lasting, strategic relationships with these institutions in support of their goals." Today's announcement includes investments in the following institutions:
"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 which continue to fight the destructive economic impact of the pandemic. Wells Fargo wants to help drive stabilization and recovery by using our financial resources and our ability to act as a partner in order to generate better outcomes," said Kleber Santos, head of Diverse Segments, Representation & Inclusion at Wells Fargo. Wells Fargo's financial commitments are in the form of critical equity capital, which is foundational to the MDIs' ability to expand lending and deposi-taking capacity in their communities. The investments, primarily non-voting positions, are designed to enable the banks to maintain their MDI (News - Alert) status. Wells Fargo is also supporting each MDI's development through a banking relationship in the form of a single touchpoint coverage model that will help them access Wells Fargo's expertise and pursue strategic priorities like entering new markets, expanding locations, designing new products, and hiring staff to support loan growth. "The investment and support from Wells Fargo will allow us to substantially increase our impact on closing the racial wealth gap. We are grateful and committed to ensuring that this capital helps drive transformational wealth building opportunities for our communities and customers," said Dominik Mjartan, president and CEO of Optus Bank. External partners that assisted Wells Fargo include the National Bankers Association (NBA) and Sullivan & Cromwell. External advisory committee members are Kim D. Saunders, president and CEO of NBA; Aron Betru, managing director of the Center for Financial Markets at Milken Institute; and John W. Rogers, Jr., chairman, co-CEO, and CIO of Ariel Investments. Wells Fargo's financial commitment announced today complements additional initiatives that aim to serve all of our customers and communities:
*Broadway is expected to merge with City First Bank in early 2021 and will become the largest African American MDI. Wells Fargo's investment will close upon completion of the merger. About Wells Fargo Community Lending and Investment Wells Fargo Community Lending and Investment (CLI) specializes in offering debt and equity capital to organizations that provide economic development, job creation, and affordable housing in communities of need nationwide. It is primarily focused on economic redevelopment and housing development nationwide, and is the No. 1 Affordable Housing Investor in the country and No. 2 Affordable Housing Lender. In 2019, CLI provided more than $4.3 billion in capital commitments, via New Markets Tax Credits, Low-Income Housing Tax Credits, Community Development Financial Institutions, and construction lending. About Wells Fargo Wells Fargo & Company is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. Wells Fargo ranked No. 30 on Fortune's 2020 rankings of America's largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health and a low-carbon economy. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories. Additional information may be found at www.wellsfargo.com | Twitter (News - Alert): @WellsFargo. WF-CF WF-DI
View source version on businesswire.com: https://www.businesswire.com/news/home/20210208005287/en/ |