I-TEAM: State Suspends Investment Activity With Wells Fargo

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Springfield – Wells Fargo will lose millions of dollars in fees after the state of Illinois suspended $30 billion in investment activity with the banking giant.

State Treasurer Mike Frerichs made the move after Wells Fargo was fined $185 million.  The retail bank admitted its employees opened bank, credit card and debit card accounts without customers’ knowledge.

A federal consent order shows those employees opened more than 2 million bogus accounts in order to meet aggressive sales goals. 

Frerichs has ordered the suspension of investments in Wells Fargo debt securities for one year; the suspension of the use of Wells Fargo as broker/dealer for the purchase of investments for one year; and the authorization of an audit to determine if improperly opening bank accounts complied with Illinois law on returning unclaimed property to consumers.

California has also suspended investment activity with Wells Fargo in that state.

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