The following is an excerpt from Kate Gibson | September 28, 2016 | CBSNews.com |
Wells Fargo is taking another hit, this time coming from its home turf.
Saying that Wells Fargo’s “fleecing of its customers” cannot go unpunished, the California treasurer on Wednesday said he was suspending much of the state’s business ties with the San Francisco bank, which has been based in California since 1852.
The Treasurer’s office has long relied on Wells Fargo as a partner to meet the state’s investment and banking needs, but the bank can “no longer be trusted with the public’s money when it has shown such little regard to the regular citizens,” State Treasurer John Chiang told a news conference.
California, the country’s largest issuer of municipal bonds, is banning Wells Fargo (WFC) from underwriting state debt and administering California’s banking transactions for 12 months, effective immediately.
The announcement by comes a day after Wells Fargo’s board said CEO John Stumpf and the executive who ran the consumer banking division would forfeit tens of millions of dollars due to the bogus account scandal that erupted earlier this month.
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