Last week, California officials suspended the state’s business relationships with Wells Fargo, and now it looks like the city of Chicago and the state of Illinois will follow suit, reports Reuters.
Alderman Edward Burke, who heads the Chicago City Council's finance committee, introduced an ordinance that would suspend Wells Fargo from acting in several capacities, including as a municipal depository, bond underwriter, and financial adviser.
"The city council should not engage in any business for the next two years with this institution that has deceived, defrauded and duped its customers," Burke said in a statement.
On the state side, Illinois Treasurer Michael Frerichs announced "plans to suspend billions of dollars in investment activity with Wells Fargo.”
Here’s why Wells Fargo is receiving so much blowback:
Wells Fargo staff opened checking, savings and credit card accounts without customer say-so for years to satisfy managers' demand for new business, according to a $190 million settlement with regulators reached on Sept. 8. The bank said it fired 5,300 employees over the issue.