Pennsylvania’s state treasury is suspending its trading and investment activities with Wells Fargo & Co. in light of the bank’s fraudulent account activity in the state.
The treasury announced the decision Thursday after a recent meeting with bank representatives.
“As the state’s financial custodian, I am very concerned about the impact of Wells Fargo’s conduct on the state and our taxpayers,” Treasurer Timothy Reese said in a news release. “While treasury wasn’t impacted directly, the bank’s actions call into question its internal controls and culture, and until the bank fixes those problems, they will not be eligible for investment or trading work with treasury.”
Wells Fargo agreed to pay a nearly $185 million fine in September for allegedly opening more than 2 million unauthorized accounts to meet sales goals. Up to potentially near 80,000 of those accounts – including 2,600 that had incurred fees – were in Pennsylvania, the bank estimated.