Wells Fargo OKd to Buy Banks Despite Protests

Wells Fargo & Co. won federal regulatory approval Monday to buy two California banks, overcoming protests from civil rights and minority business groups that tried to block the acquisitions by alleging that the bank does not do enough for the poor and minorities.

The Office of the Comptroller of the Currency and the Federal Reserve Board approved Wells Fargo’s planned $160-million purchase of Bakersfield-based Central Pacific Corp. and its American National Bank subsidiary. The regulators also approved Wells’ $74.5-million planned acquisition of Torrey Pines Group of Solana Beach, parent of Torrey Pines Bank.

Civil rights and minority business groups had protested the acquisitions, accusing the bank of failing to follow equal opportunity employment and lending practices. The groups also criticized the bank for being one of the nation’s largest lenders for corporate buyouts.

The complaints were made under the 1977 federal Community Reinvestment Act, which requires regulators reviewing merger plans to consider a bank’s track record in making loans and providing credit.

Robert Gnaizda, partner with Public Advocates, a law firm in San Francisco and one of the protesting organizations, called the ruling disappointing and said it goes against President Bush’s stated commitment to economic development in inner cities.

Betty Lattie, vice president with Wells Fargo, said that the bank believes that it has a strong record in its minority hiring and lending practices and that regulators recognized it. She said the acquisitions are expected to be completed in late March or early April.

Separately, BankAmerica’s Seafirst Corp. was given permission to buy Woodburn Bancorp., holding company for Woodburn State Bank of Woodburn, Ore.