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California Treasurer suspends state's business with Wells Fargo

Joe Mont | September 29, 2016

Wells Fargo's admission that thousands of its bank employees opened over two million fraudulent consumer accounts “is a legal and ethical outrage that cannot go unpunished,” says California State Treasurer John Chiang. In response, in a letter to the bank’s embattled CEO and board of directors, he has directed the state to immediately suspend any financial relationships it has with the institution.

As the state’s banker, the Treasurer’s office oversees nearly $2 trillion in annual banking transactions, manages a $75 billion investment pool, and is the nation’s largest issuer of municipal debt. It partners with financial institutions, including Wells Fargo, to meet the state’s investment and borrowing needs.

California’s sanctions against the bank include: suspension of investments by the Treasurer’s Office in all Wells Fargo securities; suspension of the use of Wells Fargo as a broker-...

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