City Checks Bounce, Bank Blamed
|LA Daily News|
The L.A. Daily News' Rick Orlov reports that 924 checks worth $6 million issued July 24 by the city to vendors have embarrassingly bounced. L.A. is pointing the finger, however, to Wachovia Bank, which it says suffered a transition glitch when it was taken over by Wells Fargo last year. (I'll have to remember that line the next time I kite some paper.)
Orlov quotes City Controller Wendy Gruel as saying "Wachovia did take steps to fix the situation. But there were some people who did have a problem."
The bounced checks caused some nervousness at first, perhaps being seen as a harbinger of L.A. financial woes. Vendors of the rubber checks are being given the ancient advice to redeposit their checks -- and then see what happens.