California Treasurer Suspends Wells Fargo From Underwriting For a Year

By Markets MarketWatch Pulse

The state treasurer of California has suspended Wells Fargo from "highly profitable" relationships including underwriting state bonds, due to the scandal over opening two million fraudulent customer accounts. The suspension takes place immediately and will last 12 months, State Treasurer John Chiang said. Chiang also said the $2.3 billion state pension funds have invested in Wells Fargo will be used to pursue reforms including the separation of the chairman and CEO roles and clawbacks of compensation for the most directly linked executives.

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