RELATED: Customers praise California's crackdown on Wells Fargo
In a statement, he accuses Wells Fargo of "wanton greed" and "reckless lack of institutional control." He also called the accounts scandal "a legal and ethical outrage" that must be punished.
The sanctions include suspension of investments by the Treasurer's Office in all Wells Fargo securities, suspension of the use of Wells Fargo as a broker-dealer for purchasing of investments by his office, and the suspension of Wells Fargo as a managing underwriter on negotiated sales of California state bonds where the Treasurer appoints the underwriter.
RELATED: Timeline of the Wells Fargo accounts scandal
We're also learning that Wells Fargo CEO John Stumpf is set to tell Congress the bank will end its sales goals this Saturday, which is earlier than expected.
Those sales goals are at the center of a scandal, in which Wells Fargo employees opened millions of accounts without customers' permission in order to reach those goals.
RELATED: Wells Fargo CEO forgoes $41M compensation amid accounts scandal
The bank has agreed to pay $185 million dollars to settle allegations.
CA Treasurer's letter to Wells Fargo says bank's practice of opening fraudulent accounts demonstrates "wanton greed" pic.twitter.com/q3awhVUJ8S— carolyn tyler (@ctylerabc7) September 28, 2016
State Treasurer John Chiang calls Wells Fargo's account scandal "a legal and ethical outrage" that must be punished pic.twitter.com/qRiuRq75n8— carolyn tyler (@ctylerabc7) September 28, 2016
Suspended-State investments in Wells Fargo securities- worth about half Billion. 1 of 3 sanctions in effect now! pic.twitter.com/ePhwzDlSsS— carolyn tyler (@ctylerabc7) September 28, 2016