Bloomberg news reports that Wells Fargo submitted the lowest competitive bid Wednesday to sell $636 million of California general obligations. The 12-month ban imposed in September by State Treasurer John Chiang applies to negotiated sales, in which the underwriters are picked in advance. State law requires Chiang to accept the lowest bid submitted at an auction.
"We were pleased with the price that they offered," said Marc Lifsher, a spokesman for Chiang. "It doesn’t reflect our feelings about their behavior toward their customers."
In evaluating the market and the liquidity of California bonds, Wells Fargo bankers decided to "be aggressive, put our best foot forward for the state and save them money," said Parks Lineberger, a director who worked on the deal. "This shows our commitment to the state."
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