01/25/2012 06:33 pm ET

Berkeley, California Considers Taking City Funds Out of Wells Fargo

The recommendation not to renew the city's contract will be addressed at the Jan. 31 council meeting, when the council will decide whether or not to study of the potential impacts of moving the city's account, and begin investigating alternative banking options. An evaluation and report will be due May 1.

"Short sighted and failed investment practices by some of our country’s biggest private sector financial institutions have led to the collapse of our country's economic system, massive unemployment, and the foreclosure of countless mortgages among homeowners," the recommendation states. The results have included "massive decline in revenues to the State of California treasury" and subsequently "a dramatic decline in revenue for local governments, including the City of Berkeley."

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