Associated Press

Associated Press


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 earlier this month they were banning Wells Fargo from doing business. The San Francisco-based 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.”

Wells Fargo said it will work to regain business with Ohio. “Wells Fargo manages its business with the state of Ohio in business lines that are separated from our retail bank,” the company said in a statement.

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.