WASHINGTON— President Donald Trump said his administration will look into how banks are handling payments and debt treatment for borrowers affected by the Los Angeles wildfires, singling out Wells Fargo as being “very difficult to deal with” after meeting with Los Angeles Mayor Karen Bass and Los Angeles County Supervisor Kathryn Barger, according to Reuters.
Wells Fargo declined comment, Reuters reported.
Reuters said Bass and Barger, in a joint statement posted Wednesday, said they had a “very positive discussion” with Trump about FEMA and rebuilding funds, while also pressing insurance companies to pay claims and urging large banks to ease financial pressure on Los Angeles families. Reuters noted the 2025 Palisades and Eaton fires killed 22 people, destroyed roughly 12,000 homes and caused more than $50 billion in property damage.
Reuters reported California officials had previously secured 90-day mortgage forbearance commitments from five major lenders in affected fire zones, including Wells Fargo, before state law later required lenders to offer up to 12 months of mortgage forbearance to borrowers facing wildfire-related financial hardship. Reuters noted forbearance can provide temporary relief to borrowers rebuilding after disasters, though it can also weigh on lenders as unpaid balances build.
The Reuters report said Trump’s latest comments add to broader tension between his administration and large banks despite a generally deregulatory posture toward the sector. Reuters noted Trump has repeatedly accused major banks of unfairly denying services to conservatives and has also drawn pushback from Wall Street over his call for a 10% cap on credit card interest rates, while Wells Fargo only last year emerged from its long-running Federal Reserve asset cap.