New York Mayor Bill de Blasio and Comptroller Scott Stringer blocked Wells Fargo from leading municipal bond sales or landing other banking business until it improves its track record of lending in poor communities.
Bloomberg News reports that the Democrats, who sit on the New York City Banking Commission, joined city Finance Commissioner Jacques Jiha, a de Blasio appointee, to ban the bank from conducting new work for the city. The commission, which met Wednesday, approves and oversees the banks that hold city contracts.
The action from the nation’s most-populous city marks the latest effort by state and local government officials to punish Wells Fargo, whose reputation was battered by revelations that employees created fake accounts to meet sales quotas. The New York officials said their ban wouldn’t be reconsidered until the bank elevates its rating under the federal Community Reinvestment Act.
Hit the link below to access the complete Bloomberg News article: