SAN FRANCISCO — The Bay Area Air Quality Management District’s board of directors voted on Wednesday to refrain from new business with Wells Fargo in the wake of the scandal over bogus bank accounts.
“A stand against banking fraud” was how Santa Clara County Supervisor Cindy Chavez, a member of the board of directors of the air district, described the agency’s action.
San Francisco-based Wells Fargo on Sept. 8 disclosed its employees had opened, over a period of several years, up to 2 million bogus bank and credit accounts without the knowledge or permission of customers.
Wells Fargo was fined $185 million for its actions linked to the fraudulent accounts.
Separately, the state Attorney General’s Office revealed on Oct. 19 that it had begun a criminal investigation into Wells Fargo’s sales practices.
State investigators served the search warrant at the bank’s San Francisco headquarters at 420 Montgomery St. on Oct. 5, official court records show.
“Wells Fargo’s No. 1 priority is making things right with our customers and restoring the public trust,” said Ruben Pulido, a bank spokesman.
The furor over the bogus accounts forced the resignation of John Stumpf as chief executive officer. Critics suggested that Stumpf presided over a culture that encouraged the sales activity.
Tim Sloan, a Wells Fargo veteran, took over as CEO on Oct. 12.
“The recent theft perpetrated by Wells Fargo is in stark contrast to the Bay Area Air Quality Management District’s stated mission and values,” Chavez said.
Nevertheless, the bank is also undertaking proactive steps to burnish its reputation.
“We will continue to support our Bay Area schools and nonprofits which we have funded with over $100 million in donations over the past five years,” Pulido said.
