California’s state treasurer announced on Tuesday that it is imposing a year-long ban on working with Wells Fargo after staff “fleeced” the bank’s customers by creating 2m unauthorized accounts. “My office has long relied on Wells Fargo, our oldest California-based financial institution, as a partner to meet the state’s investment and borrowing needs,” wrote Chiang. In light of this scandal, Chiang’s office has effective immediately suspended its investment in all Wells Fargo securities, use of Wells Fargo as a broker-dealer for investment purchases and use of Wells Fargo as managing underwriter on negotiated sales of California state bonds. “Wells Fargo has diligently and professionally worked with the state for the past 17 years to support the government and people of California. Our highly experienced and proven government banking, securities and treasury management teams stand ready to continue delivering outstanding service to the state,” a Wells Fargo spokesperson told the Guardian.

Source: The Guardian September 28, 2016 19:30 UTC