Financial services company Wells Fargo & Co. (WFC) said Tuesday it has reached an agreement with the city of Memphis and Shelby County, which agreed to drop a lawsuit against the company for alleged foreclosure-related race-discrimination.
The company was accused of engaging in discriminatory lending practices that led to a higher number of foreclosures in minority communities.
The lawsuit was filed by the city and county against Wells Fargo in January 2010. However, Wells Fargo denies the allegations and said it has a longstanding commitment to fair and responsible lending practices.
Under the agreement, Wells Fargo has agreed to invest $7.5 million in Memphis and Shelby County.
The deal will see Wells Fargo provide $4.5 million in grants for mortgage down payment and home renovation assistance in the area.
The company will also spend $3 million to boost local initiatives and programs related to improving economic vitality, preserving public safety, and increasing financial literacy.
Wells Fargo also set a five-year mortgage lending goal of $425 million, including $125 million exclusively for low- and moderate-income borrowers.
Shelby County Mayor Mark Luttrell, said, "While many efforts are already under way, it's evident that more must be done to help our communities recover from the housing crisis. We're glad that Wells Fargo decided to engage in a dialogue that led to this collaboration."
WFC closed Tuesday's regular trading session at $32.25, up $0.39 or 1.22% on a volume of 20.19 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.