California, the nation's largest issuer of municipal bonds, is barring Wells Fargo & Co. from underwriting state debt and handling its banking transactions after the company admitted to opening potentially millions of bogus customer accounts.The suspension, in effect immediately, will remain in place for 12 months, State Treasurer John Chiang said Wednesday. "Complete and permanent severance" between his office and the bank will occur if it doesn't change its practices, he said.
California's state treasurer, Bill Lockyer, has sent a letter to six big banks that underwrite the state's municipal bond sales, asking about the banks' involvement in selling credit default swaps on California debt.
Fallout from the bogus account scandal keeps coming, this time in the bank's home state, where millions in fees are at risk
California Treasurer suspends key banking relationships with Wells Fargo.
California's state treasurer announced Wednesday he has temporarily severed some business relationships with Wells Fargo & Co. over revelations that the bank created millions of accounts without customers' permission. Treasurer John...