Make us your home page
Instagram

Kasich: Ohio suspends doing business with Wells Fargo

Gov. John Kasich says Wells Fargo has lost the right to do business with the state because its actions have "cost it the public's confidence."  [Associated Press]

Gov. John Kasich says Wells Fargo has lost the right to do business with the state because its actions have "cost it the public's confidence." [Associated Press]

NEW YORK — Ohio's Republican Gov. John Kasich announced Friday that he was suspending Wells Fargo from doing business with state agencies, and excluding the bank from participating in any state bond offerings.

Kasich's announcement follows similar moves by the state treasurers of California and Illinois and the cities of Seattle and Chicago, which said this month they were banning Wells Fargo from doing business. The bank has been under fire after allegations came to light that Wells employees may have opened up to 2 million customer accounts fraudulently in order to meet sales goals.

While the scandal has drawn bipartisan outrage, particularly from members of Congress, Kasich is the first state-level Republican to announce actions against Wells Fargo.

"While Wells Fargo only does limited retail banking in Ohio, it does regularly seek state bond business so I have instructed my administration to seek services from other banks instead," Kasich said in a statement. "This company has lost the right to do business with the state of Ohio because its actions have cost it the public's confidence."

The ban applies to any financial services contracts that state agencies under the governor's authority may have with Wells Fargo, as well as any future state bond offerings that Ohio may make. Kasich said he will seek to exclude Wells from participating in bond offerings through the Ohio Public Facilities Commission. As governor, Kasich has a vote on commission's six-member board.

Since 2012, Wells Fargo has participated in roughly $830 million in Ohio state bond offerings, according to data provided by the governor's office. The most recent state bond offering Wells participated in was in March, for $100 million in bonds through the OPFC.

Kasich's ban is effective for a year, but could be extended depending on how Wells repairs its reputation with the public.

Ohio's Sen. Sherrod Brown, the senior Democrat on the Senate Banking Committee and a strong critic of Wells since the scandal broke, said he strongly agreed with Kasich's announcement.

"Wells Fargo cheated customers and until it lays out concrete steps to make things right, it doesn't deserve the state of Ohio's business," Brown said.

Kasich: Ohio suspends doing business with Wells Fargo 10/14/16 [Last modified: Friday, October 14, 2016 3:03pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. As White House defends Jared Kushner, experts question his alleged back-channel move

    National

    WASHINGTON — The Trump administration argued over the weekend that back-channel communications are acceptable in building dialogue with foreign governments, part of an effort to minimize fallout over White House adviser Jared Kushner's reported discussion about creating a secret conduit to the Kremlin at a Russian …

    President-elect Donald Trump embraces son in law Jared Kushner, as his daughter Ivanka Trump stands nearby, after his acceptance speech at the New York Hilton Midtown in the early morning hours of Nov. 9. [Mark Wilson | Getty Images]
  2. Tampa is 15th-most popular city to move to with U-Haul

    Markets

    TAMPA —Tampa is undoubtedly a destination point, at least according to U-Haul.

    Tampa is the No. 15 destination for people moving with U-Haul trucks. | Times file photo
  3. Florida's economy growing faster than other big states and far better than U.S. overall

    Business

    When it comes to economic growth, Florida's running alongside the leading states and well ahead of the United States as a whole.

  4. Westshore Marina District project takes shape with another acquisition

    Real Estate

    TAMPA — One of Tampa Bay's prime waterfront areas took another major step toward redevelopment Friday as WCI Communities bought 2.35 acres in Westshore Marina District.

    WCI Communities, Lennar's high-end subsidiary,has paid $2.5 million for 2.35 acres in the Westshore Marina District for 35 townhomes. WCI is under contract  to buy an additional 9.5 acres.
[BTI Partners]
  5. Posh Guy Harvey RV park to open in Tampa Bay with $250,000 cottages

    Business

    HOLIDAY — Love those Guy Harvey T-shirts with the soaring marlins? In the not too distant future, you might be able to kick back in your own Guy Harvey cottage in the first-ever Guy Harvey RV park.

    Renderings of the clubhouse and an RV cottage site of the planned Guy Harvey Outpost Club & Resort Tarpon Springs.
[Guy Harvey Outpost Collection]