Illinois and Chicago eye Wells Fargo enterprise bans

CHICAGO Wells Fargo & Co (WFC.N) faces possible bans from doing enterprise with the town of Chicago and the kingdom of Illinois inside the wake of its income scandal that erupted earlier this month.

Alderman Edward Burke, who heads the Chicago metropolis Council's finance committee, delivered an ordinance on Friday that could droop the bank from acting in numerous capacities, including as a municipal depository, bond underwriter and monetary adviser.

"The city council ought to now not have interaction in any commercial enterprise for the following  years with this organization that has deceived, defrauded and duped its customers," Burke said in a statement.

Illinois Treasurer Michael Frerichs set a Monday information convention to announce "plans to suspend billions of greenbacks in funding hobby with Wells Fargo," according to an advisory from his workplace on Friday.

Wells Fargo personnel opened checking, financial savings and credit score card bills with out consumer say-so for years to fulfill managers' call for for brand new enterprise, according to a $190 million settlement with regulators reached on Sept. eight. The financial institution stated it fired five,three hundred employees over the problem.

On Wednesday, California nation Treasurer John Chiang introduced a sweeping suspension of the kingdom's business relationships with Wells Fargo for the following three hundred and sixty five days. The financial institution is likewise beneath stress from Oregon's treasurer to reform its control structure and govt compensation.

U.S. lawmakers known as on Thursday for Wells Fargo chief John Stumpf to surrender and a pinnacle residence Democrat demanded the financial institution be damaged up because it's miles too huge to manipulate.

Chicago's finance committee is scheduled to take up the proposed ordinance on Wednesday. The city has paid Wells Fargo $19.45 million in prices on account that 2005, in line with the committee.

The bank served as senior underwriter on five Chicago bond issues totaling almost $969 million considering 2006, according to Thomson Reuters statistics.

Wells Fargo made the list of 15 senior underwriters tapped by means of Illinois this month for bond income over the next three years. A spokeswoman for Governor Bruce Rauner declined to comment on whether his workplace is rethinking Wells Fargo's choice.