California suspends some Wells Fargo business amid scandal

Markets Associated Press

California Treasurer John Chiang says he's suspending some of the state's business with Wells Fargo amid a scandal over millions of accounts allegedly opened without customers' permission.

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Chiang, a Democrat, said Wednesday he wants to send a message that the bank's behavior was unacceptable and he hopes his colleagues in other states will follow suit.

Chiang's office is the nation's largest issuer of municipal debt. He says for the next 12 months he will stop using Wells Fargo as the managing underwriter on certain categories of bond sales, will avoid buying Wells Fargo securities and won't use the bank as a broker for investment purchases.

Wells Fargo spokeswoman Jennifer Dunn says the bank understands the concerns and is working to rebuild trust with customers.