Oct 18 The state of Massachusetts will stop
using Wells Fargo & Co as a bond underwriter for one
year, joining a growing list of state and local governments to
suspend business with the bank after revelations it opened
millions of unauthorized accounts.
Massachusetts Treasurer Deborah Goldberg instructed her
staff late on Monday to immediately remove Wells from the
state's approved list of underwriters for a term of one year,
her spokeswoman said on Tuesday.
Compared to other states, Massachusetts' exposure to the
bank is "extremely limited," but Goldberg "isn't convinced that
Wells Fargo has grasped the level of seriousness of their
actions nor have they addressed systemic failures within their
organization," spokeswoman Chandra Allard said in an email.
Last month, the bank agreed to pay a $190 million settlement
over its staff opening as many as 2 million accounts without
customers' knowledge. The misconduct triggered a raft of federal
and state investigations and cost former chief executive and
chairman, John Stumpf, his job when he resigned last week.
Earlier this month following the scandal, Massachusetts, as
well as Oregon and the city of New York, said they were
reviewing their business relationships with the firm.
The backlash has since spread. On Friday, Ohio said it would
ban state business with Wells for a year, following the city of
Chicago and the states of Illinois and California.
(Reporting by Hilary Russ; Editing by Meredith Mazzilli)