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11/3/2016, 7:57 PM (Source: TeleTrader)
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Pennsylvania suspends Wells Fargo from trading

Timothy Reese, the Pennsylvanian treasurer, announced on Thursday he has suspended Wells Fargo & Company from any Treasury investment or trading activities for one year. The decision was made after a recent meeting with bank representatives, and is based on the recent fraudulent accounts scandal the lender was involved in, according to the treasurer.

Reese expressed concern about the impact of the bank's conduct on taxpayers and said that while the Treasury wasn't directly impacted, the scandal called into question internal controls and the culture of the financial institution, which makes it ineligible for working with the Treasury until those problems are fixed.

Following a $815 million settlement of Wells Fargo with the federal government, a meeting was held with bank representatives, during which they told the Treasury that around 80,000 unauthorized accounts existed in Pennsylvania. However the state's financial authority failed to recognize the plans which would ensure the problem wouldn't happen again.

The Treasury will continue to monitor the situation and may lift the suspension should the lender demonstrate progress in reforming its operations and culture.

Breaking the News / RV