LANCASTER, Pa. – Pennsylvania Treasurer Timothy Reese expects to huddle with Wells Fargo Securities representatives within the week to discuss its relationship of the bank in light of its fake-accounts scandal.
"Wells Fargo's conduct is very concerning and Treasurer Reese will meet with representatives of the bank in the coming days to better understand the scope of wrongdoing and how they will ensure it does not happen again," Reese's communications director, Scott Sloat, said in a statement.
Blowback from the scandal has been swift and heavy. Chicago on Oct. 3 suspended Wells Fargo from bond and other banking work after a year, right after Illinois banned the firm. California Treasurer John Chiang suspended the firm from bond underwriting and other investment relationships for at least a year.
New York City officials said they might cancel business with the bank, while the Metropolitan Transportation Authority, whose vast operations include the city's subway system, left Wells Fargo Securities off its senior managing rotation list pending an internal investigation.
Philadelphia is also re-evaluating the bank, while Connecticut added Morgan Stanley along with Wells Fargo as a co-bookrunning manager for a general obligation sale.
"People need to go to jail over that," Pennsylvania Auditor General Eugene DePasquale said after a speech in downtown Lancaster. "Whether the state does business with them, obviously you have to follow your own competitive bidding rules. But it is completely outrageous what Wells Fargo did."
Following Chicago's action, Wells Fargo in a statement called itself "one of the nation's safest and strongest financial institutions."
Charlotte, N.C., kept Wells Fargo for its $150 million GO bond sale on Thursday, saying the investment bank is a separate unit from the bank, and that its experience with Wells Fargo has been positive.