California replaced Wells Fargo as a lead underwriter on two bond sales in the wake of its decision.On Wednesday, Wells Fargo said it would continue to serve Chicago customers and support non-profit community agencies, educational institutions and foundations. "Wells Fargo is disappointed that the Chicago City Council has chosen to suspend a relationship with one of the nation's safest and strongest financial institutions at a time when the city needs access to dependable financial partners," the bank said in a statement.Following the vote, Chicago Mayor Rahm Emanuel told reporters: "The city's disappointed in Wells Fargo. "Illinois Governor Bruce Rauner's office, which included Wells Fargo in a pool of senior underwriters for bond sales, said on Sunday the state would not be using the bank for debt deals "until further notice. Those activities include investments in Wells Fargo debt and bank broker/dealer services.Also on Wednesday, Connecticut's state treasurer Denise Nappier told Reuters in a statement that Morgan Stanley was added as a co-bookrunner for an October bond sale because of troubles at Wells Fargo. "Wells Fargo had been assigned as the sole bookrunner prior to the recent revelations of regulatory actions against the bank.

Source: The Star October 05, 2016 19:30 UTC