Following from Wells Fargo's 2,000,000-account fraud against its own customers -- part of a decade-old pattern -- the state of California has imposed sanctions on the bank, freezing it out of bond issues, brokerage business, and suspending all investment in Wells Fargo-issued securities.
That's going to hit the shareholders where they live -- California issues more bonds than any other state, $50B this year so far, and the state treasurer has $75B under management, and does $2T worth of banking per year. State treasurer John Chiang said, "How can I continue to entrust the public’s money to an organization which has shown such little regard for the legions of Californians who have placed their financial well-being in its care?"
Good question! Another good question: why would you start entrusting the public's money to these people after a 12-month timeout, given that this isn't the first time they've committed high financial crimes and (seemingly) got away with it?
Treasurer John Chiang Sanctions Wells Fargo Bank for Defrauding California Customers
Calls for Overhaul of Banking Industry [California State Treasurer]
(via Dan Hon)
Wells Fargo is America's most scandal-haunted bank, which is quite an accomplishment in a heavily competitive field; now the bank has started closing its branches and cutting jobs (after pressuring employees to commit mass fraud on pain of being fired and blacklisted from the industry).
For more than a decade, Shipping and Transit LLC (AKA Arrivalstar) has been aggressively pursuing dubious patent claims against public transit companies, shippers, and other businesses whose practices overlapped with Arrivalstar's absurd, obvious patents on using GPSes to figure out where stuff was.
At $111,000,000, the California dialysis industry's campaign spending against Prop 8 (which caps the price of outpatient dialysis) is now the most expensive in US history.
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