California, Ohio Extend Sanctions Against Wells Fargo Bank
California State Treasurer John Chiang said Monday that he has decided to extend his state's financial sanctions against Wells Fargo & Co. into a second year, while Ohio extended its sanctions another six months.
October 17, 2017 at 02:38 PM
2 minute read
By Sue Reisinger
California State Treasurer John Chiang said he has decided to extend his state's financial sanctions against Wells Fargo & Co. into a second year, while Ohio extended its sanctions another six months.
At least four other states and three cities also suspended their governments' business with Wells Fargo. So far only California and Ohio have extended their suspensions, according to bank spokesman Gabriel Boehmer.
Chiang imposed the ban against doing state Treasury business with Wells Fargo last October after it was revealed the bank had set up millions of fake accounts without customers' knowledge.
A statement from Chiang's office on Monday noted “that there has been an alarming drum beat of new reports of egregious, unethical or illegal actions by the bank over the past year.”
A statement from the bank said, “Wells Fargo is in the business of banking, not politics. Over the past year, we have met and exceeded all of Treasurer Chiang's expectations.”
Citing a recent loan to the California Department of Water Resources and the underwriting of $800 million in bond issues for the state, the Wells Fargo statement continued, “We have served the Treasurer's Office with distinction and integrity for a decade. We will continue serving the state and rebuilding trust with Californians as we take steps to become a better bank, regardless of politics.”
The state of Illinois was the first to follow California's lead last year, followed by Ohio, Massachusetts and Pennsylvania.
One city, Chicago, also imposed a one-year ban on municipal business on Oct. 5, 2016. The suspension ended when the period lapsed last week. Other city bans continue, though for different reasons.
The city of Seattle imposed a ban in February of this year. The Los Angeles Times reported the city council's vote was not over bank misconduct, but in protest of the bank's investing in the Dakota Access Pipeline.
Likewise in May, New York City blocked Wells Fargo from doing any city business, including municipal bond sales, until it improved its record on lending in poor communities, according to Bloomberg News.
Contact the reporter Sue Reisinger at [email protected]; Twitter: @sreisinger
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