The University of California will terminate $475 million worth of contracts with Wells Fargo after repeated criticism from the Afrikan Black Coalition, or ABC, over its ties to private correctional facilities.
ABC alleged in a press release that Wells Fargo finances CoreCivic, a company that owns private prisons and detention centers. Additionally, in 2012, Wells Fargo settled with the U.S. Department of Justice over allegations of discrimination against African-American and Hispanic borrowers.
The university terminated a $25 million commercial paper contract with Wells Fargo in November 2016. According to the ABC press release, the university will end its $150 million interest reset contract by April 1. Two-thirds of the $300 million line of credit will be terminated by February, with the remaining $100 million to be terminated as soon as a replacement bank is found.