Cook County wants to know the arrangements between Wells Fargo and former county officials, whom the bank hired as consultants to help fight the county's suit, which alleges Wells Fargo contributed to the post-2008 mortgage crisis through alleged discriminatory lending practices.
The county and the big bank have been in Chicago federal court since 2014, when the county sued Wells Fargo, claiming the lender made mortgage loans prior to 2008 to minorities, but under rates and terms more onerous than those given whites with similar finances. The county claimed such a practice, known as reverse redlining, left swaths of vacant houses, draining the county and other local governments of tax money and resources.
The county filed similar lawsuits against other lenders, including Bank of America and HSBC. Elsewhere, these banks were also sued under similar allegations by other local governments.
The county said it learned in September that Wells Fargo retained two top county financial officials to serve as consultants: Thomas Glaser, the county's chief financial officer from 1995 to 2007, and John Chambers, who worked for the county from 1972-2004, including 14 years as county comptroller beginning in 1990. The hiring of these men raised confidentiality concerns, in the county's eyes.
"The budget process within the County at the level of these County officials, in particular, is based on policy decisions, not merely crunching numbers. Accordingly, formulating the policies underlying the budget decisions may be privileged information protected from disclosure," the county said.
As a consequence, the county asked Wells Fargo to furnish copies of the consulting agreements between the men and Wells Fargo.
Wells Fargo refused, contending the agreements were off-limits, because Glaser and Chambers are consulting experts, rather than witnesses to facts in the case. Regardless, Wells Faro said, the two ex-county officials will not be testifying.
The county is arguing Glaser and Chambers were in office during the time covered by the suit, so "facts and opinions" they offer Wells Fargo predate their retention by the bank, which means they are fact witnesses and their consultant agreements are fair game.
"Courts have recognized that parties may attempt to use a witness’ dual role as an expert and fact witness to shield legitimate fact witnesses from discovery and thereby impede the rightful access of their opponents to those sources," the county said.
The county added: "To prevent this kind of gamesmanship, courts require that the line between the two roles must be clearly drawn."
The line between the information held by Glaser and Chambers prior to their retention by Wells Fargo as witnesses, and the information they developed since as consultants, is "impossible to draw," according to the county.
A status hearing is Feb. 4.
Wells Fargo is defended by attorney Abram Moore and others with the firm of K&L Gates, of Miami and Chicago, and attorneys with the firm of Katten Muchin Rosenman, of Chicago.
Cook County is represented by attorney James Evangelista and others from the Atlanta firm of Evangelista Worley; as well as attorneys from the firms of Milberg Phillips Grossman, of Garden City, N.Y.; and Wexler Wallace, of Chicago.