A Twin Cities neighborhood action group is blaming big banks for costing Minneapolis schools millions in state funding. The group, Neighborhoods Organizing for Change(NOC), linked home foreclosures to per-pupil funding.
"Wells Fargo's share of what it costs the Minneapolis Public Schools is $28 million," said Steve Fletcher, Executive Director of NOC. "I would like to see Wells Fargo write a $28 million check to the Minneapolis Public Schools. That would be a really good start. I would also like to see them agree to mediation for everybody facing foreclosure and I would like to see them start thinking about writing down principal to really adjust where the market is."
The NOC report contends that Wells Fargo was responsible for more than 300 home foreclosures in Minneapolis in the last year. US Bank is linked to more than 200 foreclosures in the same time period. The NOC report also notes that Minneapolis schools lost an estimated 4,000 students since 2006 resulting in a loss of almost $150 million in state funding.