CONSEQUENCES

Chicago Suspends Work With Wells Fargo

After scandal over phony accounts.

The Chicago City Council approved a one-year suspension of Wells Fargo on Wednesday due to the banking giant’s scandal involving phony accounts. The bank will not be allowed to do business with the city, including bond underwriting, brokerage duties, or other services for 12 months. The company has also been similarly punished by the states of California and Illinois. “I hope this action by the city of Chicago will echo around the nation and make it clear to other institutions this conduct is unacceptable,” said Alderman Edward Burke, who leads the council’s finance committee. Wells Fargo has earned $19.5 million in fees from Chicago since 2005.