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Wells Fargo Settles Discrimination Case With Feds

The federal government has reached a $5 million settlement with San Francisco-based Wells Fargo to resolve allegations the financial institution discriminated against pregnant women, new mothers and women on maternity leave. 

The U.S. Department of Housing and Urban Development charged that Wells Fargo's home mortgage unit refused to make loans available to some women based on their gender or family status, and forced some women to give up their maternity leave and go back to work before it would close a loan with them.

Although maintaining the agency found no violations of any laws, Wells Fargo says a settlement will avoid a legal battle. The company will distribute $165,000 to six families and set aside at least $3.5 million to compensate other applicants.
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Nikole Robinson Carroll is KNPR's Morning Edition host. You can hear her every morning from 5am until 10am on News 889. She also produces segments for KNPR's State of Nevada.