The state of California will continue its financial sanctions against Wells Fargo for a second year following a string of new disclosures about over-the-top criminal practices at the bank since its sham accounts scandal unfolded.
State Treasurer John Chiang said Monday that revelations of wrongdoing at multiple business units have undermined confidence in the San Francisco bank, which also has failed to complete necessary reforms.
The sanctions suspend investments by the Treasurer’s Office in Wells Fargo securities, bar use of the bank as a broker-dealer for the purchase of investments and bar the bank as a managing underwriter for bond sales in which the treasurer has the authority to appoint the underwriter.
The measures were imposed in September 2016, just weeks after the bank agreed to a $185-million settlement with regulators for creating millions of unauthorized checking, savings and other accounts. The next month, then-CEO and Chairman John Stumpf resigned, pocketing millions.