State Bar of California Announces First Leadership Banks Tuesday, February 11, 2020 Categories: News Releases This week, the State Bar of California announced the initial class of Leadership Banks. To join the ranks of Leadership Banks, a bank must agree to pay comparable interest rates on its attorney client trust accounts under California’s Interest on Lawyers’ Trust Accounts (IOLTA) program, thereby helping to support access to justice for low-income Californians. The first Leadership Banks are: Wells Fargo Bank of Southern California Chase Bank "We are pleased that these major banks have stepped up early to support and increase the availability of legal aid resources," said Donna Hershkowitz, Interim Executive Director. "The program is spurring positive reactions from banks, and we hope that leadership of Wells Fargo, Chase, and Bank of Southern California will prompt others to follow suit." “Wells Fargo supports and is happy to participate in the State Bar of California’s Leadership Bank program,” said Jeff Dean, SVP, IOLTA product & program management for Wells Fargo. “Their mission to provide meaningful access to justice for low-income Californians aligns with our broader commitment to serve and support the communities in which we do business.” “Bank of Southern California is proud to participate in the California IOLTA Leadership Bank Program and offer IOLTAs at a higher interest rate, to better serve the legal community,” said Nathan Rogge, President and CEO of Bank of Southern California. “As a local community bank, with a history that spans 18 years, we are committed to making a difference in the lives of many Californians. This partnership is just one of the many ways we can demonstrate our support.” “Chase is pleased to be recognized as a Leadership Bank by the State Bar of California in support of their charitable work for those in need,” a Chase spokesperson said. To become a designated Leadership Bank, financial institutions need to: Pay at least the established compliance rate (ECR) on their IOLTA accounts. The current ECR is 68 percent of the Federal Funds Rate (FFR); and Waive fees and charges on all IOLTA accounts, regardless of the account’s size. IOLTA is the interest from pooled attorney bank accounts that hold nominal or short-term client funds. The State Bar distributes the interest revenue to legal aid programs throughout California. IOLTA revenue depends on interest rates, which plunged in 2008 and remained low for 10 years. State law requires banks to offer IOLTA accounts at interest rates comparable to those paid to other similarly situated depositors. With 170 banks holding nearly $5 billion in IOLTA accounts, the State Bar is hopeful others will follow the lead of Wells Fargo, Bank of Southern California, and Chase. The State Bar Board of Trustees approved a record distribution of $55.6 million in IOLTA funds for 2020. However, there is still a significant unmet need for legal aid in California. The California Justice Gap Study found that limited funding prevented California’s legal aid organizations from fully resolving up to 60 percent of the problems for which low-income Californians sought their help. The State Bar’s new Leadership Banks program is among its initiatives to maximize funding for legal aid, in keeping with its mission, which includes furthering access to legal services. ### Follow the State Bar online Twitter, Facebook, LinkedIn, and Instagram The State Bar of California's mission is to protect the public and includes the primary functions of licensing, regulation and discipline of attorneys; the advancement of the ethical and competent practice of law; and support of efforts for greater access to, and inclusion in, the legal system. Previous Article Next Article