California Extends Ban Against Wells Fargo Due to Scandals
- Official cites ‘alarming drumbeat’ of reports tarnishing bank
- Extension cuts Wells Fargo off from major muni-bond issuer
Wells Fargo's Image Problem Gets Worse
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Wells Fargo & Co. was barred by California’s treasurer from being hired for another year because of the bank’s fraudulent account scandal, leaving the company largely cut off from underwriting work with one of the nation’s biggest municipal-bond issuers.
Treasurer John Chiang on Monday said he decided to leave the sanctions in place against the San Francisco-based bank, whose reputation has suffered because of revelations employees opened bogus accounts in customers’ names to meet sales quotas. Chiang’s decision will prevent his office from hiring Wells Fargo as an underwriter or investment broker. The ban was imposed in September 2016 and was set to lapse after a year.