California treasurer imposes year-long ban on working with Wells Fargo

[Eugene]

Source: The Guardian

California treasurer imposes year-long ban on working with Wells Fargo

Discovery that the bank ‘fleeced’ its customers demonstrates
‘at worst, a culture which actively promotes wanton greed’,
says state treasurer John Chiang

Jana Kasperkevic in New York
Wednesday 28 September 2016 20.37 BST

California’s state treasurer announced on Tuesday that it is imposing a year-long ban on working with Wells Fargo after staff “fleeced” the bank’s customers by creating 2m unauthorized accounts.

The move by the US’s largest state comes as the bank faces another grilling in Congress over the scandal that has already led the bank to pay $185m in penalties and clawback millions in bonuses from top executives.

“The recent discovery that Wells Fargo & Company fleeced its customers by opening fraudulent accounts for the purpose of extracting millions in illegal fees demonstrates, at best, a reckless lack of institutional control, and, at worst, a culture which actively promotes wanton greed,” John Chiang, California’s state treasurer, wrote in a letter to the bank on Tuesday.

Chiang’s office oversees nearly $2tn in annual banking transactions and manages a $75bn investment pool.

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Read more: https://www.theguardian.com/business/2016/sep/28/wells-fargo-customers-accounts-scandal-california-treasurer-ban

[Angry Dragon]

1. the Board of Directors should all be thrown in prison

[BootinUp]

2. This will get their attention. nt

[stuffmatters]

3. Chiang's punishing Wells Fargo effectively, hope more state & pension plans like CALPERS follow.

And make this a common gesture of retaliation against proven corporate criminality in the future. It's taken us eight years to realize our DOJ will not prosecute these criminals, time for public coffers to start withdrawing their massive financial support that will cost CEO's their jobs because of billions in loss of revenue.