Seattle parts ways with Wells Fargo; removes city money

The City of Seattle is taking nearly $3 billion out of Wells Fargo’s pockets. The city council unanimously voted in favor of removing city money from the bank Tuesday afternoon.

There was lengthy public comment on the issue in the lead up to the vote. People cited many reasons to take city money away from Wells Fargo, such as its role in for-profit prisons, or the recent fake account scandal. But the bank’s investments in the Dakota Access Pipeline was the primary reason for the legislation.

“There are two major sections to this, one dealing with ethical practices and one dealing with environmental issues, specifically the Dakota Access Pipeline,” said Councilmember Tim Burgess shortly before the council voted on the bill.

Related: Seattle’s proposal to change its police department

9-0. CMs unanimously vote to lapse contract w/ Wells Fargo for banking services. Bid for next bank will incentivize “Social Responsibility” pic.twitter.com/pH4PjAA2cx

— Seattle City Council (@SeattleCouncil) February 7, 2017

Now approved, the measure directs the city not to renew its contract with the bank and also requires the city take into account a company’s business practices and social responsibility factors when awarding city contracts. The City of Seattle moves about $3 billion each year through the bank. It manages a range of revenue through the bank accounts, such as parking meter revenue, according to The Seattle Times. Seattle’s average daily balance in the last six months at Wells Fargo was $10 million.

Wells Fargo won its current contract with Seattle after a bidding process that also included Union Bank, US Bank and Bank of America. The contract began on Jan. 1 2013 and runs through 2018.

Leaving Wells Fargo

Last week, the Affordable Housing, Neighborhoods and Finance Committee voted to move forward with an ordinance proposed by councilmember Kshama Sawant to remove deposits from Wells Fargo and seek a “more socially responsible bank.” Councilmember Burgess noted Tuesday that the bill, which was approved, builds on Sawant’s original proposal. It broadens scope of social responsibility and fair businesses, however, to cover all city contracts, not just banking contracts.

Hundreds of protesters gathered outside the bank’s branch in downtown Seattle and filled the council chambers to speak against the bank on Tuesday.

Council Bill 118883 says it would strengthen the city’s policies for conducting business with partners that are “committed to fair business practices,” requests that the city’s contract with Wells Fargo not be renewed, and that new investments in the bank’s securities would not be made for three years.

The city will now put out bids to other banks for the city to do business with.

MyNorthwest’s Dyer Oxley contributed to this report.