Wells Fargo & Co. (NYSE: WFC) Cuts Off Mountaintop Removal Mining Companies

Wells Fargo & Co. (NYSE: WFC) joined a number of other banks in restricting the money that it loans to companies which practice mountaintop removal, a controversial mining practice which blows the tops off of mountains and dumps them into nearby streams, making coal and other minerals easier to reach.

A number of ecologically sensitive non-profits have pressured banks into changing their lending practices to mining companies. Both Bank of America Corp (NYSE: BAC) and Citigroup, Inc (NYSE: C) changed their practices in 2008 and 2009 to limit money which would be lent to mountain top removal mining companies. Credit Suisse, Morgan Stanley (NYSE: MS) and JPMorgan Chase & Co. (NYSE: JPM) enacted policies earlier in the year.

Now, Wells Fargo is the last of the large-cap banks to enact policies which will prevent mountain top removal mining companies from receiving credit. The San Francisco Chronicle said that Wells Fargo’s motives may be more to do with new EPA restrictions on mountaintop removal, making it a less appealing investment from a financial perspective.

“We are seeing a sector-wide shift away from an increasingly controversial practice that is devastating Appalachian communities and the mountains and streams they depend on,” said Rebecca Tarbotton, new Executive Director of RAN and formerly the head of its campaign against MTR financing. She added: “Bottom-line, as access to capital becomes more constrained it will be harder for mining companies to finance the blowing up of America’s mountains.”

Wells Fargo & Company is a diversified financial services company. The Company provides retail, commercial and corporate banking services through banking stores located in 39 states and the District of Columbia. It provides other financial services, through subsidiaries engaged in various businesses, principally wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. As of December 31, 2009, the Company provided banking, insurance, investments, mortgage and consumer finance from more than 10,000 stores under various types of ownership and leasehold agreements.

Shares of Wells Fargo & Co. (NYSE: WFC) traded down 0.62% hitting $25.84 during mid-day trading on Friday.