© Reuters. California extends Wells Fargo ban for one year
- Noting new reports of “egregious, unethical, or illegal” actions by Wells Fargo (NYSE:WFC), California Treasurer John Chiang, extends the ban on the bank from doing underwriting work for one of the country’s largest issuers of municipal debt.
- While the ban prohibits Wells Fargo from being hired as an underwriter, it can still bid on bond deals awarded through competitive auctions, and earlier this year won the bidding for a $604M CA issue.
- Speaking on the earnings call last week, CEO Tim Sloan said there’s been “a little bit of impact” as California and other municipalities have put the bank on probation.
- Now read: Wells Fargo: No Problems Here