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 Sulaiman Law Group, LTD may be able to help.
Contact our firm today for more information.