(Bloomberg) -- Wells Fargo & Co. may be forced to leave the municipal-debt underwriting business for a short period of time because of the backlash from the bank's mishandling of client accounts, according to Court Street Group, a New York-based research and consulting firm.
* The speculation is completely inaccurate and the bank isn't leaving the municipal business, Wells Fargo spokesman Gabriel Boehmer said in an e-mail response * Impact of California's ban of Wells Fargo in bond deals may exceed that of UBS Group AG exiting muni underwriting, says report by Court Street's Matt Posner, Bob Donahue and Joseph Krist * Other states may follow suit and bar Wells Fargo from managing bond deals, report says * Firm sees less demand for high-grade general obligations from states as the bank pulls back, report says
To contact the reporter on this story: Romy Varghese in San Francisco at rvarghese8@bloomberg.net.
To contact the editors responsible for this story: Dave Liedtka at dliedtka@bloomberg.net.
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