California Suspending Business Ties With Wells Fargo Following Fraud Admissions

SACRAMENTO (CBS13) — California is suspend business ties with Wells Fargo over admissions its employees opened millions of fake consumer accounts, the state treasurer's office announced on Wednesday.

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Treasurer John Chiang ordered the suspension of the company's participation in relationships with the state.

Those include investments by the treasurer's office in Wells Fargo securities, using Wells Fargo as a broker-dealer for purchasing treasurer's office investments, and having the company be a managing underwriter in the sale of state bonds.

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The sanctions are expected to last for 12 months.