Calif. County Won't Do Bond Business With BofA, JP Morgan
Santa Cruz County, California will no longer let Bank of America or JP Morgan Chase handle the county's bond investments, the San Jose Mercury News reports. The decision stems from national settlements "involving fraud allegations that the two companies negotiated agreements giving them a look at competitors' bids for handling the investments," according to the story. "Local, state and federal governments should not be involved with those who have abused the trust of their customers, especially in the case of public agency investments," said Treasurer-Tax Collector Fred Keeley. Wells Fargo settled a federal suit in New York over municipal bid-rigging suit. Wells is paying $37 million to settle. The company blames Wachovia, which it agreed to buy in 2008, for the problems. Santa Cruz County does not have a banking relationship with Wells Fargo, according to the Mercury News report.