California Suspends ‘Business Relationships’ With Wells Fargo, Trillions at Stake
California Suspends ‘Business Relationships’ With Wells Fargo
California, the nation’s largest issuer of municipal bonds, is barring Wells Fargo & Co. from underwriting state debt, from its banking transactions and in its investments after the company admitted to opening millions of bogus customer accounts.
The suspension, in effect immediately, will remain in place for 12 months, State Treasurer John Chiang said Wednesday. “Complete and permanent severance” between his office and the bank will occur if it doesn’t change its practices, he said.
“Wells Fargo’s fleecing of its customers by opening fraudulent accounts for the purpose of extracting millions in illegal fees demonstrates, at best, a reckless lack of institutional control and, at worst, a culture which actively promotes wanton greed,” the treasurer said in a statement.\