Wells Fargo Dismisses Two Employees Over U.S. Probe into LIHTC
Wells Fargo has dismissed two Charlotte, N.C.-based executives in its community lending and investment division in relation to a federal investigation into the bank’s negotiation and procurement of LIHTCs. The two executives had been previously suspended by Wells Fargo in connection with the investigation.
The Department of Justice looked into whether the bank colluded with developers to submit lowball bids on tax credits for low-income housing projects. An investigation that started in Miami was referred to the Justice Department’s corruption unit, which then investigated Wells Fargo deals across the country. Banks are the biggest buyers of the tax credits because they get both a tax write-off and credit under the Community Reinvestment Act.