As reported by Bloomberg News, Wells Fargo has been banned for another year from being hired by California as an underwriter or investment broker by the office of the state’s Treasurer.
Originally enacted in 2016, the ban was set to lapse but has instead been renewed for another year’s term due to ongoing concerns about new reports of the bank’s “egregious, unethical or illegal actions over the past year” including the overcharging of veterans for mortgages and the denial of loans to the children of some immigrants. The nationwide scandal relating to Wells Fargo’s practices across a broad range of banking services has led to officials in New York, Washington, and Illinois also working to cut ties with the bank.
Though California’s renewed ban against Wells Fargo prevents it from being hired as an underwriter, the bank can still bid on bond deals that are awarded via competitive auctions. Wells Fargo won the bidding on one such bond issue in April of 2017.
Read the full article on Bloomberg News.