California suspends business relationships with Wells Fargo

Wells Fargo ATM bank machines are shown at one of their new retail banks in Carlsbad, California

By Robin Respaut

SAN FRANCISCO (Reuters) – California State Treasurer John Chiang on Wednesday announced a sweeping suspension of business relationships with Wells Fargo & Co <WFC.N> as punishment for the company’s defrauding of customers.

In addition, Chiang vowed to work with the state’s two giant public pension funds to change the bank’s management structure.

The sanctions, which will last for 12 months, include suspending Wells Fargo as a managing underwriter on state negotiated bond sales, Chiang said. California is the nation’s largest issuer of municipal debt.

(Reporting by Robin Respaut; Additional reporting by Dan Freed in New York; Editing by Daniel Bases and Leslie Adler)