Illinois Joins California in Suspending Wells Fargo from Bond & Investing Work
Illinois has announced that it is taking after California and suspending Wells Fargo & Co. from investment and bond work, taking away their capability of handling billions of dollars. This comes after the company admitted to creating and opening millions of fake customer accounts in order to hit specific sales quotas and earn bonuses.
This new development comes after the CEO of Wells Fargo, John Stumpf, and numerous members of the bank’s board are being pressured to step down and resign after the fraudulent account debacle. Stumpf testified in front of Congressional lawmakers last month, claiming that he was sorry for breaking the trust of the bank’s clients and that the bank was working to help any customers who were hurt in any way. As a result of the pressure, Stumpf also forfeited $41 million in pay.
Wells Fargo was fined $185 million after investigations by the U.S. Consumer Financial Protection Bureau determined that the bank opened nearly two million fake credit card and deposit accounts without customer authorization. The bank is already facing many lawsuits from customers, investors, and fired and demoted workers.
California was the first to suspend Wells Fargo, banning them for one year. California Treasurer John Chiang also called for Stumpf to quit his position. Morgan Stanley was called upon in Connecticut to serve as the lead underwriter with Wells Fargo on a planned state bond issue. Other states have maintained their relationships with Wells Fargo.
Consumers who have been impacted by the fraudulent behavior should be able to pursue legal action against the bank to recover compensation. If you or someone you love was harmed, our Chicago consumer attorneys at Atlas Consumer Law may be able to help.
Contact our firm today for more information.