California's treasurer said Wednesday that he's suspending some of the state's most profitable lines of business with Wells Fargo amid allegations bank employees opened millions of accounts without customers' permission. While the sanctions apply to only a portion of California's business with Wells Fargo, the impact could grow if more states follow suit, as state Treasurer John Chiang urged them to do. For the next year, Chiang said he will stop using Wells Fargo as the managing underwriter on negotiated bond sales. The treasurer said his office, which oversees a $75 billion investment fund, will not buy additional Wells Fargo stock and won't use the bank as a broker for investment purchases. Wells Fargo understands the concerns raised over its sales practices and is working to rebuild trust with customers, spokeswoman Jennifer Dunn said.

Source: ABC News September 28, 2016 20:32 UTC