New York City Comptroller John C. Liu, who oversees the $113.7 billion New York City Retirement Systems, renewed his request that Bank of America, Citigroup and Wells Fargo conduct independent audits of their mortgage and foreclosure practices.
Mr. Liu said the audit committees at the three banks should report their findings on the banks' internal controls by Sept. 30. Shareholders may vote on the proposals at the banks' annual meetings later this year.
Mr. Liu, whose office said it owns $855 million of shares in the three banks, filed similar requests in 2010 that were rejected at annual meetings last year.
The lenders are among firms negotiating a settlement with a group of state attorneys general and federal officials, following a nationwide probe into disclosures that banks were using flawed documents in seizing homes.
“The banks' anticipated settlement with state AGs will bring badly needed relief to families at risk of losing their homes, but the perverse policy incentives that are at the root of harmful mortgage practices are still pervasive,” Mr. Liu wrote in an e-mailed statement. “Bank directors need to step forward and address the underlying conflicts that lead to unnecessary foreclosures and costly settlements.”
Scott Silvestri, a spokesman for Bank of America, and Shannon Bell, spokeswoman at Citigroup, declined to comment on Mr. Liu's latest request.
“Our board considers all shareholder proposals as part of its normal process,” Mary Eshet, a Wells Fargo spokeswoman, wrote in an e-mailed statement.
Mr. Liu requested in December that Goldman Sachs Group, J.P. Morgan Chase and Morgan Stanley toughen so-called clawbacks, which allow the firms to reclaim pay awarded to employees who acted improperly. Goldman Sachs and Morgan Stanley both said this week they will rewrite their clawback policies in response.
